The process should be completed by the end of its fiscal second quarter and will lead to $60 million in savings for the current fiscal year.
Advertisement
Nordstrom has grabbed market share by offering more generous services than its rivals, including free shipping. Most cuts will target staffers at the retailer’s Seattle headquarters, including employees in marketing, finance, legal and merchandising, according to the Seattle Times.
The company said in a statement that it will first look at options such as not filling open positions as a way to reduce its headcount.
The cuts represent a fraction of the company’s entire workforce, which totals more than 70,000 employees.
Nordstrom is planning to eliminate 350 to 400 jobs as part of a restructuring plan, the department store announced today. The tougher retail environment with growing completion and sagging sales has made many companies take this drastic step and Nordstrom will be the latest one to join them.
Profit plunged 17% and same-store sales rose a meager 2.7% past year as the company battled fierce competition online and sluggish traffic to its bricks-and-mortar locations. It also comes as retailers continue to struggle to integrate their online and physical channels.
Darrow, the company spokeswoman, said Monday that the company’s technology cuts earlier were not about pulling back from its online efforts but merely refocusing.
Advertisement
The job cuts come amid a slowdown in sales that has impacted a host of retailers recently, and follow job cuts by Walmart and Macys.
