Kohl's to eliminate 250 positions in restructuring drive
Department store operator Kohl’s has confirmed to FashionNetwork.com that it is cutting 250 positions, including leadership roles in stores and the company’s corporate offices, in an effort to streamline communication and drive efficiency.
According to Kohl’s, the cuts will remove a layer of regional store leadership roles and restructure teams in the company’s merchant organization. The shift will also imply changes to other positions at the Kohl’s corporate HQ.
All those affected by the cuts are being offered a severance package described by Kohl’s as “competitive,” as well as outplacement services.
In a statement e-mailed to FashionNetwork.com, Kohl’s SVP of communication Jen Johnson was keen to point out that the planned cuts do not reflect any performance issues at the company, emphasizing that they are being implemented as part of a wider strategic shift.
“It is important to note that Kohl’s is in a position of financial strength,” she said. “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.”
She also highlighted that the company is not closing any stores or corporate officers and continues to make hires in key areas, as well as investments in areas such as stores, technology and strategic growth initiatives.
Nonetheless, the news comes on the heels of a disappointing holiday season for the Menomonee Falls, Wisconsin-based retailer, which posted a 0.2% decline in same-store sales in November and December 2019.
These stalling sales led the company to narrow its full-year earnings guidance to the bottom end of an already lowered outlook of between $4.75 and $4.95 per share.
Copyright © 2021 FashionNetwork.com All rights reserved.