Hudson’s Bay has announced that it will be cutting 2,000 jobs in North America as sales and profits decline.
According to an article on Reuters, Hudson’s Bay has announced that it will be cutting 2,000 jobs in North America as sales and profits decline. Jobs will be cut from the company’s brands like Saks Fifth Avenue and more.
Some jobs have already been cut. Saks Fifth Avenue Senior Vice President of digital retail Joe Milano has been laid off. Some of the company’s buying team have been laid of as well while hundreds of other jobs have been cut at other companies.
Hudson’s Bay says the job cuts will save the company more than $350 million annually. The company’s plans, however, will cost $95 million.
The company released a statement saying, “these savings are required to help offset revenue, margin and cost pressures the company is facing as a result of the current environment.”
CEO Jerry Storch released a statement saying, “with all the changes taking place in the industry, we know we need to be a leaner organization, but we also want to make sure that we’re a better one.”
Although Hudson’s Bay has said that it has already cut jobs it hasn’t specifically said how many jobs will be cut from its companies.
Executive Chairman Richard Baker released a statement saying,
“we are reallocating resources to accelerate the opportunity we see online, as we run our brick and mortar operations more efficiently. Our team is taking the right steps to optimize our North American business and create efficiencies by leveraging the scale of our company. At this critical moment of change in the retail industry, I believe in the future of our all-channel model, and we are adapting to meet the evolving needs of our customers.”
The announcement comes just a couple of months after rumors began circulating that Hudson’s Bay was in talks to acquire Neiman Marcus. There were also rumors that the company made takeover bids for Macy’s.
The job cuts might make sales and profits increase at the company. Sales at department stores have been declining for a while now as customers shop more online than in stores.
Hudson’s Bay has not said whether or not it will close any stores.
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