Nordstrom, Inc. (NYSE: JWN) plans to eliminate approximately 350 to 400 positions by the end of the second quarter to reduce costs by approximately $60 million in fiscal 2016.
In an announcement Monday, the Seattle company said the cuts will come primarily at its Corporate Center and regional support teams. To minimize impacts on current employees, the company will first look at options such as closing unfilled open positions. Employees whose roles are eliminated will receive separation pay and benefits.
The cuts reflect changes to Nordstrom's operating model and broader strategic plans to strengthen its foundation for future growth and improve productivity and service. The company, long a benchmark for customer service in the retail industry, previously shared that it is continuing to make fundamental changes to serve customers better by leveraging its enterprise capabilities.
Initiatives include a new operating model in its Technology group focused on strengthening its ability to deliver on e-commerce and digital initiatives, and proactively addressing opportunities to improve supply chain and marketing effectiveness.
"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," said Blake Nordstrom, co-president, Nordstrom, Inc. "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."
The financial impact of these strategic initiatives has been incorporated in the company's financial outlook that was provided on February 18, 2016.
Nordstrom, Inc. is a leading fashion specialty retailer based in the U.S. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 326 stores in 39 states, including 121 full-line stores in the United States, Canada and Puerto Rico; 197 Nordstrom Rack stores; two Jeffrey boutiques; and one clearance store. Additionally, customers are served online through Nordstrom.com, Nordstromrack.com and HauteLook. The company also owns Trunk Club, a personalized clothing service serving customers online at TrunkClub.com and its five clubhouses.
