cut about 15% of its corporate workforce as the coronavirus pandemic crimped sales and accelerated consumer shopping online.
A spokeswoman for the department-store chain declined to say how many employees were part of the layoffs. The affected positions included open roles and jobs at the company’s Menomonee Falls, Wis., headquarters and its New York City and California offices, she said.
The company had roughly 122,000 employees in 2019, including 37,000 full-time and 85,000 part-time associates, according to regulatory filings.
Kohl’s plans to save about $65 million annually from these actions, it said in a securities filing Tuesday. It expects to incur roughly $23 million in pretax costs from the latest move, which will mostly be recorded in the current fiscal quarter.
Like other retail chains, the company has been battered by a slowdown in traffic to its physical stores as consumers shift their shopping online because of concern over the coronavirus. Kohl’s, which temporarily shut stores earlier this year as the pandemic spread, has since reopened them but at reduced hours and capacity. In its second quarter, Kohl’s saw revenue slide 23%.
Even before the pandemic took hold, department stores and mall-based chains had been struggling to maintain traction with shoppers.
The company started restructuring in February, when it laid off about 250 employees to streamline management. The company removed a layer of regional store managers and eliminated other corporate jobs.
Overall, this year’s restructuring initiatives will result in roughly $100 million in savings annually, the company said Tuesday.
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