Grainger plans to cut up to 400 jobs as sales drop

Declining sales are driving Lake Forest-based Grainger to cut costs and eliminate between 300 and 400 jobs.

Grainger reported daily sales declined 9 percent versus January 2008. The company reported the downfall is due to "the weakened demand across all customer end-markets and geographies."

With the continued decline in sales, the company is taking actions to reduce costs including reducing employee travel expenses and relocation and eliminating merit increases for all executives and salaried employees. The company said there will be no payout of management incentive bonuses for 2009 unless company meets aggressive sales targets. Grainger reported it will not fill open positions and plans to reduce hours for part-time employees.

The cuts are expected to result in severance charges anticipated in the range of $15 to $20 million. Most moves will take place in the first half of 2009.

• Business writer Kim Mikus contributed to this report.