HBC to cut 2,000 jobs as it restructures business
HBC, the owner of the Hudson’s Bay, Saks Fifth Avenue and Lord & Taylor department store chains, has announced that it will cut around 2,000 jobs in North America as part of plans to restructure its business.
Having also reported a 3% drop in first quarter sales to $3.2 billion, the company said the move will help it to achieve $350 million worth of cost savings by the end of the 2018 financial year.
In a statement, HBC said reducing its employee base by approximately 2,000 positions, including those previously announced in February, will result in a nimbler company and help streamline the decision making process.
The company’s transformation plan also includes creating two distinct leadership teams, one focused on Hudson’s Bay and one dedicated to Lord & Taylor, to drive market-specific strategies. In addition, it will integrate digital functions throughout the organisation to deliver a more seamless in-store and online experience for customers.
Jerry Storch, HBC’s chief executive, said: “We know we can do better and we are taking bold decisive action. Rather than chase the rapid industry changes, our Transformation Plan will reposition HBC to get ahead and stay ahead. This North American based initiative, the result of a process we began more than six months ago, is designed to increase synergies across our portfolio of businesses, sharpen capabilities that give the company a competitive edge and re-align our expenses to focus on growing our digital business.”
HBC has also announced that Alison Coville has been named president of Hudson’s Bay. Coville has held leadership positions in merchandising with HBC since 2005 and has been instrumental in developing strategies to improve sales and profit.
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