How much longer until H&R Block bites the dust? The once dominant tax preparation company has fallen on hard times thanks to the popularity of do-it-yourself tax software like TurboTax. According to this KCRA report, the company will be closing 400 smaller locations.
H&R Block is everywhere — and that’s a problem.
The company said it plans to close 400 smaller offices after it lowered its sales and profit margin outlook for the rest of the year. H&R Block’s stock plunged nearly 20% Wednesday.
During a conference call with analysts after the closing bell Tuesday, H&R Block CEO Jeff Jones said the decision to shutter the offices was part of its annual review and that the stores were mostly smaller ones.
The company does not plan to cut any jobs as a result of the closures, a spokeswoman for H&R Block told CNNMoney. She said that the stores being closed are all within five miles of other H&R Block locations.
H&R Block may be suffering from a Starbucks-like phenomenon — having too many locations that are within close proximity to other ones.
The increased popularity of do-it-yourself tax software like TurboTax is also hurting the company.
Jones noted that many people, including millennials, still want assistance when doing taxes.