Coldwater Creek, the women's retailer based in Sandpoint, announced Tuesday it will cut spending on its full-time workforce by 20 percent.
The struggling company thinks it will save $20 million to $25 million in fiscal 2014 through the "restructuring and cost reduction program." The layoffs and restructuring will cost the company $3 million in severance and other expenses, it said.
The move is meant to improve Coldwater Creek's financial and competitive position, making it more efficient and profitable, according to a press release.
This month, the retailer announced it may put itself up for sale. Its board's executive committee is considering partnerships, joint ventures or a sale or merger of the company.
"The decision to downsize our workforce, in conjunction with our other cost reduction initiatives, was a very difficult one," said JIll Dean, president and CEO. "We appreciate the many contributions of all our employees, and we will provide support to those affected during this transition period."
Coldwater Creek was founded in 1984.
The company's stock price was unchanged at $1 Tuesday.