As some retailers staff up for the holidays, one major department store chain is eliminating jobs as part of a restructuring effort.
Neiman Marcus confirmed today that it axed jobs at its Dallas headquarters last week. The cuts, which totaled less than 100, included layoffs, but mostly involved eliminating vacant positions, according to the company.
The decision was executed last Wednesday, affecting less than 1% of its 15,000-person workforce. Employees were handed severance pay and were provided with outplacement services, according to Neiman Marcus.
The move comes as the luxury retailer seeks to reallocate its assets to focus on high-growth operations. As it continues to chart a path toward revamping its business, Neiman Marcus announced in June that it had ended its six-quarter comparable sales winning streak with a 1.5% decline and revenues of $1.1 billion.
During the third quarter, the firm also widened its net losses to $31.2 million from $19.9 million during the same period in 2018. It joined a roster of department stores, including Nordstrom, Kohl’s and JCPenney, that posted disappointing results as they struggled with declining foot traffic, merchandising misses, unseasonable weather and other challenges.
“We’re not satisfied with our Q3 results, but we believe that we are making the appropriate investments in the business now that will lead to long-term sustainable growth,” CEO Geoffroy van Raemdonck said during the company’s call with analysts over the summer. “2019 is an investment year, in which we are building capabilities and redeploying resources, which will impact our business across multiple time horizons.”
Neiman Marcus stopped posting quarterly earnings results after it turned to debt restructuring early this year. The retailer is saddled with about $5 billion in debt — much of which stemmed from a 2013 private equity buyout.
As the holidays approach, the chain once again released its Christmas Book, an iconic upscale gift-giving guide that has become a favorite of television talk shows. This year, it offers shoppers a visit to Christian Louboutin’s atelier in Paris and a trip to Tokyo to meet Jeff Staple, founder and creative director of streetwear brand Staple Pigeon, and score a wardrobe of custom kicks.
Neiman Marcus’ Shoe-Fantasy Holiday Gifts With Christian Louboutin and Jeff Staple
Sales Are Down at Neiman Marcus — But the Retailer Is Getting a Handle on its Hefty Debt
Retail Jobs Lagged in September Ahead of Holiday Hiring