Due to the continued consolidation in the retail computer market space, office supply super stores have become one of the leaders in the sales of retail computer and computer products. With the continued impact of the economic situation in the U.S., Office Depot announced that it is trimming the red ink with the announcement that they will be letting over 2,200 employees go and they will be eliminating 112 stores.

Office Depot described the 112 stores to be shut down as ‘under performing stores.’ The majority of the 112 stores to be eliminated are in the U.S., but some Canadian stores will be closed, as well. Once the closings are completed, they will continue to operate 1,163 stores. In addition to the stores, the company will also be closing 33 company distribution centers.

As for 2009, the company will be cutting plans for new store openings in half, with only 20 new stores planned. The company is also planning an additional 14 stores to be closed in 2009, but more closings beyond that are possible, depending on profitability and the economic climate.

The news of Office Depot store closings isn’t good news for the major computer manufacturers such as HP, Sony, Lenovo, Acer, Toshiba, Panasonic, and Gateway who all sell systems in Office Depot stores. A reduced store count will mean an impact on the number of units ordered by the company. The majority of computer manufacturers are already seeing a decline in orders and on-hand inventory levels by major retailers.

Office Depot is claiming that they expect to see a positive impact on the company’s stock price, but analysts are already suggesting that the cuts may not be enough when compared to their competitors. The company will be taking a charge that is pegged in the neighborhood of $300 million to cover the costs associated with the closing.

As for the 2,200 employees to be out of a job due to the closings, it is expected that closings of the stores and distribution centers will happen over the next three-month period. The company has not released an exact timetable as to the schedule of the closings.