Kohl’s is eliminating about 250 positions as the company restructures, an initiative that includes eliminating a layer of regional management positions, according to published reports, as well as shaking up the merchant organization.
In published reports, Jen Johnson, svp/communications for Kohl’s, said the layoffs and corresponding reorganization would empower decision making, streamline communications and drive efficiency. Many of the layoffs will occur at offices in Menomonee Falls, WI, the corporate headquarters, New York and California, according to the reports.
The restructuring comes on the heels of soft holiday sales. In early January, Kohl’s reported that its comparable sales for fiscal November and December 2019 combined decreased 0.2% from the period a year earlier.
In announcing the holiday comps, Michelle Gass, Kohl’s CEO, said, “Throughout the holiday period, we remained focused on serving our loyal customers and engaging with an increasing number of new customers. We are managing the business with discipline, and we expect to deliver on our earnings guidance for the full year. We continue to see momentum in key areas including our digital business, active, beauty and children’s, and solid performance in footwear and men’s. This was offset by softness in women’s, which we are working with speed to address.”
A statement from Johnson on the Kohl’s restructuring, as received by HomeWorld Business, asserted:
“Today, we restructured parts of our organization to create a more customer-centric focus and position Kohl’s for long-term success. This reorganization in our business will empower decision-making, reduce management layers, streamline communications and drive greater efficiency in many areas of our business.
This includes the difficult but necessary decision to eliminate approximately 250 positions. The departures include removing a layer of regional store leadership roles and positions, restructuring teams in our merchant organization, and changes to other positions in our corporate offices. We put a great deal of thought and planning into this decision and have offered a competitive severance package and outplacement services to help all affected associates as they transition to their next step. We deeply thank these associates for their contributions and years of service at Kohl’s.
It is important to note that Kohl’s is in a position of financial strength. We are not closing any stores or corporate offices and we are continuing to hire in key areas. The company is also continuing to invest in many areas of the business including our stores, technology and strategic growth initiatives. 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.”