Nordstrom Cuts Jobs To Adapt To The Changing Consumers

 

Nordstrom  is cutting back. The department store chain announced last week that it will eliminate up to 400 jobs at its headquarters and regional offices in an attempt to cut about $60 million in annual costs.

The company said it will seek to minimize the number of people losing jobs as the first job cuts will be in currently open positions. Those who are let go will receive separation pay and benefits. In recent years, Nordstrom has been concentrating more of its efforts on enterprise technology enhancements in an effort to keep pace with a changing consumer base.

“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., in a statement. “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 newly announced job cuts come a month after Nordstrom confirmed to GeekWire that it has cut 130 technology-related positions. Nordstrom employs more than 7,000 at its headquarters and around 70,000 worldwide when you include part-time positions.

In an online discussion last week, many of the industry insiders on the RetailWireBrainTrust approved of Nordstrom’s move.

“I would be far more worried about cuts at the field/store levels than at national or even regional offices,” said Steve Montgomery, president of B2B Solutions. “The retail world is changing and more retailers are not leading the change with adjustments in staffing from brick-and-mortar to online. I expect that many of the jobs being cut are a result of this change.”

 

Source: http://www.forbes.com

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