Zale Corporation Inc., which operates as a specialty retailer of fine jewelry, on Wednesday revealed its plans to shut down 115 underperforming stores and layoff 245 jobs during the year.

The company intends to save about $34 million in expenses through fiscal 2010 by closing about 115 underperforming stores, which will be closed as leases mature.

In addition, the company stated that it has plans to slash $175 million from its budget through cost and inventory reductions, including the elimination of 245 jobs.

Market experts believe that the latest move to cut 245 jobs by the company has been planned after posting a net loss for the second quarter of 2009.

Recently, Dallas-based Company reported a loss of $23.6 million, or a 74-cent loss per share, compared with profits of $61 million in the second fiscal quarter of 2008.