Kohl’s is laying off hundreds of workers as part of its restructuring plan amid sluggish sales.
The retail chain confirmed that it was eliminating 250 jobs, including a number of regional store leadership roles and members of its merchant organization. The department store also announced changes to other positions in its corporate offices.
“This reorganization in our business will empower decision-making, reduce management layers, streamline communications and drive greater efficiency in many areas of our business,” SVP of communications Jen Johnson said in a statement.
The company said it would offer severance packages and outplacement services to the employees affected. Kohl’s added that it would not be shuttering any stores or corporate offices as part of the layoffs.
“It is important to note that Kohl’s is in a position of financial strength,” Johnson explained. “We are continuing to hire in key areas. The company is also continuing to invest in many areas of the business, including our stores, technology and strategic growth initiatives. The organizational changes we’ve made are driven by the evolution of our strategic business priorities to create a more agile and empowered organization to support our long-term sustainable growth.”
Despite a push to capture millennial shoppers and a high-profile partnership with Amazon, Kohl’s holiday sales fell short — calling attention to the retailer’s challenges as it executes a turnaround plan that has yet to yield the anticipated results.
Last month, the Menomonee Falls, Wis.-based company announced same-store sales for the months of November and December that dropped 0.2% from the previous year. In a statement at the time, CEO Michelle Gass noted momentum in e-commerce as well as the active, beauty and children’s departments, coupled with solid performances in its footwear and men’s categories. However, those positive sales were offset by a weakness in women’s, which she said the firm is “working with speed to address.”
The firm is scheduled to post fourth-quarter earnings on March 3 and will host an investor day on March 16 in New York City.
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