Nordstrom Inc. said Monday it will be cutting about 350 to 400 jobs as it looks to be more nimble at a time where shoppers are shifting their spending more online.
The upscale department store chain, based in Seattle, says the cuts will be primarily in its corporate center and regional support teams. The process should be completed by the end of its fiscal second quarter and will lead to $60 million in savings for the current fiscal year. The cuts represent a fraction of the company's entire workforce, which totals more than 70,000 employees. Nordstrom says that it's first looking at closing unfilled open positions to minimize the impact on current employees.
The changes come as Nordstrom reported a sales slowdown at its regular-price stores during the fourth quarter, which includes the holiday season. And it offered a subdued profit outlook. It also announced that it was scaling back capital spending so it could focus on the most important projects. Like other retailers, Nordstrom is trying to better integrate its physical stores with online services and improve its supply network. The layoffs follow job cuts by other retailers including Wal-Mart and Macy's.