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Martin Moylan
St. Paul, Minn.

Select Comfort to drop 120 Minn. employees

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Select Comfort, one of the nation's leading bed retailers and creator of the Sleep Number bed, is cutting about 120 jobs at its Plymouth headquarters.

The company says the job cuts, which will take out about a fifth of Select Comfort's corporate workforce, are in response to slowing sales.

Select Comfort estimates the workforce reduction will save the company about $15 million a year.

The company, which has more than 470 company-owned stores located across the United States, warned the outlook for 2009 is not good.

The retailer was already on track to close some 20 stores during the first quarter of 2009. And now it expects to close additional stores throughout next year.