Two corporations are facing significant layoffs after it was announced that retail locations and internal restructurings were underway. The 1st was Kohl’s, who announced that 250 positions under their corporate division would be terminated. This will extend to additional layoffs on the regional-store leadership level, with this announcement coming after rumours indicated that Kohl’s is financially struggling with the advancement of digital stores like Amazon and Etsy.
This corporation claims that they’re in a position of financial strength and that their restructuring efforts following an internal decision with executives. This decision is to reduce management layers, which will create greater efficiency and communication between the retail to corporate levels. Representatives from Kohl’s admitted that multiple areas of their business have struggled with communicator efforts, with the Vice-President demanding that this change throughout 2020.
Macy’s Shutting Down 125 Stores
The next corporation that’s facing significant layoffs is Macy’s, one of the most notable retail brands in the United States of America. Confirmations made on February 13th noted that 125 locations would be shut down throughout the next three years, which will cut more than three thousand jobs. The majority of these layoffs will face the corporate division at 66%, with the remaining 33% hitting the retail level. Several corporate officers are also being terminated, as these efforts are made to increase annual profits. Macy’s Corporate anticipate a company-wide savings of $600 million throughout 2020, which will increase to $1.5 billion in 2022.
Bringing costs down in retail markets has become a significant priority for all corporations operating under this industry. Macy’s wants to revise their internal strategies, allowing for teams to engage with each other on more personalized levels. Executives with Macy’s hope that this will limit duplicative work while increasing production on the corporate scale. Until completion of the restricting occurs in 2022, there’ll be multiple challenges that face this Macy’s. Workforces will be on the edge of their seats for upwards of twenty-four months, wondering if they’ll be terminated or remain a part of the reformatted Macy’s.
There will be one headquarters for Macy’s going forward, with that being in New York City. Offices being shutdown include their San Francisco, Cincinnati, Tempe, Lorain, Clearwater and Mason locations. The state most affected by these closures will be Ohio, with Mason and Lorain both being located in the jurisdiction limits. When it applies to the Arizona State with the Tempe Location, more than 800 jobs are being terminated. Employees with their call centre office are being provided severance packages, with remaining individuals receiving transfers to the distribution centre in Arizona.