Kohl’s, an American retail chain, has announced a reduction of nearly 10 per cent of its corporate workforce as part of a broader effort to improve profitability. The move comes as the retailer continues to navigate shifting consumer spending patterns and increasing competition in the retail sector.
The company stated that more than half of the job cuts would come from eliminating open positions, while the remaining reductions would affect current employees. The layoffs follow Kohl’s recent decision to close 27 underperforming stores by April, along with an e-commerce fulfilment centre in San Bernardino, California.
According to its latest regulatory filing, Kohl’s employed about 96,000 people in 2023, including 36,000 full-time and 60,000 part-time workers. The recent workforce reductions signal the company’s focus on streamlining operations amid declining demand.
Like many department stores, Kohl’s has been struggling with inconsistent consumer spending. Shoppers have been shifting towards discount retailers and trendier apparel, favouring new and minimalist styles over traditional department store offerings. This changing preference has contributed to weaker sales performance.
In November, Kohl’s appointed former Walmart executive Ashley Buchanan as its new CEO, following the sudden exit of Tom Kingsbury, who served for less than two years. Shortly after the leadership transition, the company warned of a sharper decline in annual sales than initially projected.
As Kohl’s implements cost-cutting measures, the company faces the challenge of maintaining customer engagement and adapting to evolving retail trends. The restructuring efforts aim to position the retailer for long-term sustainability in a competitive marketplace.
