Kohl’s, the American retail chain, is set to lay off 250 employees. It is reported that an entire hierarchy of regional store leaders will be rendered jobless. However, the laid off employees will be offered competitive severance packages and will also receive support in terms of finding jobs.
The move to cut jobs is part of the retail chain’s reorganisation process, to ensure better operations, streamline communications, encourage better decision making and do away with excess layers of management. The job cuts are expected to bring about better efficiency across business departments and areas.
The layoffs will affect regional store leadership roles, restructure the retail chain’s merchant organisation and also bring about alterations in some of the corporate teams. However, it is reported that the retail chain will not be closing down any stores or corporate offices. In fact, Kohl’s will continue to recruit more people in some of the key areas.
The job cuts are expected to help Kohl’s to ensure more agility and empowerment in the Company so that sustainable growth can be achieved in the long run with better focus on customers.
Maintaining that Kohl’s continues to be financially strong, the Company has assured that it will continue to invest in its stores, better technology, and strategic growth initiatives.
Last week, American department store retail chain, Macy’s also announced the closure of its San Francisco office. All its tech-related operations will be shifted to New York City and Atlanta. Macy’s.com will also be relocating to New York City. The closure of the San Francisco centre, according to experts, reflects management failure and inability.