Upscale Fashion Retailer Nordstrom Trimming Four Hundred Corporate Jobs
On Monday, Seattle, Washington based upscale fashion retailer Nordstrom said, it will trim four hundred corporate jobs. The tougher retail environment with growing completion and sagging sales has made many companies take this drastic step and Nordstrom will be the latest one to join them.
Most of the jobs to be affected by the company's decision will be at the headquarters and regional offices. The action will be taken by July end and the move is expected to save the company around $60 million.
Nordstrom, in recent times invested billions to build its leading e-commerce business but at the cost of dropping sales at its physical stores.
Earlier in February, the company forecasted that in the first half of the year, its profit per share would drop thirty percent. It also announced that it will cut down its tech spending expansion. Nordstrom's online sales have boosted and the company gets its twenty percent sales from online sources that's an eight percent increase compared to five years back.
That growth did not come just like that; huge investments have gone behind it with computerized systems, new distribution facilities and gearing stores to help in filling the online orders. The top executives of the retailer planed to trim the spending by focusing on the most crucial initiatives than to only work on limitless projects that fetch margin benefits.
Comparable sales dropped 3.2percent during the holiday season for the second consecutive quarter at Nordstrom chain stores.
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