PetSmart lays off 176 employees

PetSmart, one of nation's largest pet retailers, said it laid off 176 employees Wednesday in an attempt to cut costs and position the company for future profitability.

The Phoenix-based company said the cuts involved headquarters jobs and leadership positions in the field.

PetSmart has embarked on a cost reduction program that targets all areas of the business, including goods sold, logistics, sourcing, store operating costs and overhead, company spokeswoman Erin Gray said in statement.

Earlier this year, Petsmart faced pressure from shareholders demanding a sale of the company. Investment firm Longview Asset Management and hedge fund Jana Partners both publicly called on PetSmart to sell itself, a move they say will benefit shareholders. Longview has about a 9 percent stake in PetSmart, while Jana holds nearly 10 percent, according to FactSet.

Analysts say a sale will likely not happen.

PetSmart CEO and President David Lenhardt acknowledged during its second quarter earnings call that overall consumer spending is down and that the company is operating in a competitive market where customers have more choices for their pets' needs.

PetSmart plans to offer more products, personalized services and a loyalty program. Recently, the company acquired Pet360, an online pet supply retailer.

PetSmart is Arizona's fourth-largest public company by revenue. It operates 1,249 stores and has 52,000 associates, according to the company's website.

Reach the reporter at the angelique.soenarie@arizonarepublic.com