WASHINGTON — Popular baby retailer Carter's announced it plans to close 150 stores and cut its workforce by 15% amid the impact of tariffs.

In an earnings report released Monday, the Atlanta-based baby retailer said higher tariffs "weighed meaningfully" on its profits. Carter's said it expected $200 million to $250 million in additional costs due to tariffs.

As a result, the company is increasing its number of store closures by 50 and downsizing its workforce, cutting around 300 office jobs by the end of 2025.

The company hopes the workforce reductions will save $35 million annually starting in 2026.

About 150 stores will close in North America over the next three years as leases begin to expire, according to the earnings report. The stores represent roughly $110 million in annual ne

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