You will be redirected back to your article in seconds
Skip to main content

Nordstrom Slashes Hundreds of Corporate Jobs

Nordstrom Inc. has taken an axe to its workforce again.

The department store operator broke the news to staff Monday that more than 350 positions would be eliminated, primarily from its corporate center and regional support teams, in order to generate cost savings of about $60 million in fiscal 2016.

Nordstrom said it expects the process to be completed by the end of the second quarter and that the final figure could be as high as 400.

According to a statement, employees whose roles will be wiped out will receive separation pay and benefits. The financial impact of these “strategic initiatives” was incorporated into the company’s previously published fiscal outlook.

“We will never change our commitment to serving customers, but recognize how they want to be served has been changing at an increasingly rapid pace,” Blake Nordstrom, co-president, said. “Meeting our customers’ expectations means we must continually evolve with them. We see opportunities to create a more efficient and agile organization that ensures we’re best positioned to achieve our goals.”

Monday’s announcement is part of the company’s overall plan to “strengthen its foundation for future growth and improve productivity and service.” Those initiatives include building a new operating model in its technology group focused on e-commerce and digital, as well as proactively addressing opportunities to improve supply chain and marketing effectiveness.

About 130 members of its technology team were laid off in March, in addition to a number of top executives leaving the company, including the vice president of technology, Bill Tucker, John Mayfield, vice president of enterprise architecture and system development and support, and executive vice president of selling technology, Sam Hogenson.

In February, Nordstrom reported dreary fourth-quarter earnings and admitted that last year’s $300 million investment in technology and e-commerce hadn’t delivered the desired results.

Nordstrom stock (JWN) inched up 1.26% to $52.35 but was still down from a 52-week high of $80.23. The company will report first-quarter results on May 12.