Dow component Home Depot Inc. (NYSE: HD) announced today that 7,000 jobs, or roughly 2% of its workforce, will be eliminated as the company shutters its 34-store EXPO Home Design Centers business. The retail chain said that EXPO "has not performed well financially and is not expected to anytime soon. Even during the recent housing boom, it was not a strong business. It has weakened significantly as the demand for big ticket design and decor projects has declined in the current economic environment."

Two thousand of the job cuts will stem from back-office reductions and a 10% haircut to the officers' ranks. Additionally, HD says it's freezing the salaries of all corporate officers in an attempt to save cash. Also on the chopping block is capex; the retailer said that capital spending will be slashed to about $1 billion in the coming fiscal year.

The changes to HD's payroll will result in about $532 million in restructuring costs, with $390 million affecting the recently concluded fourth quarter. However, the company backed its fiscal-year forecast. Sales and earnings per share are expected to decline by 8% and 24%, respectively, excluding charges.

Happily for the housing-dependent retailer, investors today seem encouraged by its cost-cutting moves. HD shares opened on a gain of about 4%.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.