Home Business Nordstorm Finds itself in a bind; Lays Off More Employees Than Expected

Nordstorm Finds itself in a bind; Lays Off More Employees Than Expected

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Nordstrom is laying off thousands of employees, consisting of a large number from its business operations in Seattle, as it copes with pandemic-related losses, according to a previous staff member and reports in a trade journal.

A Nordstrom representative acknowledged Monday that the Seattle-based retailer is “realigning and minimizing our workforce to support our market plan,” without providing any specifics.

But a veteran Nordstrom employee who had simply been laid off from a business system in Seattle said Tuesday the retailer had actually cut 6,000 jobs nationally in June. The worker’s department lost around 30% of its personnel, stated the employee, who had actually been with Nordstrom for more than a decade.

The employee’s account follows a report recently in a market publication, Sourcing Journal, where unnamed sources stated Nordstrom was laying off 20% to 25% of its staff nationally “over the near term.”.

That would equate into task losses of between 13,600 and 17,000, based upon the business’s 2019 labor force. A business representative consistently decline to comment on the figures Tuesday, but after the story was released stated the 13,000-plus quote drawn from the Sourcing Journal story was “considerably more” than the jobs impacted.

Retail analyst Neil Saunders, of the GlobalData Retail speaking with company, said Monday he was told recently by a source at Nordstrom that more layoffs were most likely.

The business has stated it is “taking actions throughout our business to enhance our monetary position,” consisting of closing 19 locations.

Nordstrom declined to state how the job cuts fall on its corporate and store-level operation, however acknowledged that the reductions would consist of “our corporate support teams.” Salaries have actually been reduced for many executives, while Pete and Erik Nordstrom and other board members “are not getting pay for a portion of the year,” the representative said.

The former worker said the layoffs were initially prepared for the week of June 1, however were postponed by the downtown protests and looting, which left the flagship store heavily damaged. Personnel were notified of the layoffs on June 8th or 9th and the last day was June 19, the worker stated.

The layoffs come just weeks after Nordstrom revealed that most of its 378 stores, consisting of all 15 Washington places, would be resumed business by the end of June.

They follow months of unprecedented difficulties as Nordstrom and other sellers shuttered stores in the face of the pandemic. In May, Nordstrom reported a quarterly loss of $521 million and a 40% decline in sales as the pandemic forced stores to close.

Those disappointing outcomes come as the wider retail sector, specifically brick-and-mortar outlet store, braces for a pandemic economy and buyers who want to save cash and prevent public places.

Under those conditions, sellers “do not need as numerous partners in stores,” stated Camilla Yanushevsky, a retail industry expert with CFRA.

Although consumer anxieties will fade, analysts worry that lots of people who shifted to online shopping during the pandemic may never ever go back to traditional.

That assessment was shared by the recently laid-off Nordstrom employee, who kept in mind that the business had been working to move more of its sales into the online channel on the presumption “that the consumer is not returning rapidly to the physical stores.”.

That bodes badly for laid-off employees intending to eventually be rehired. Yanushevsky said most market forecasts suggest “that around 40% of 50% [of the layoffs] within the retail market will be permanent.”.

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Brittany Long
Brittany is a Content Writer at Drew Reports News. She started at Drew Reports News as a freelance writer in 2018. Born and raised in the heart of the automotive world, She has a special place in her heart for mobility startups and gadgets. She specializes in Food, Entertainment, Health and General news. She can be reached at brittany@drewreportsnews.com
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