Last updated on February 13th, 2020 at 01:16 pm
Menomonee Falls-based Kohl’s Corp. is laying off 250 employees as part of a restructuring aimed at creating “a more customer-centric focus.”
CNN Business retail and grocery reporter Nathaniel Meyersohn tweeted the news and a screenshot of a company statement.
The statement, attributed to Jen Johnson, senior vice president of communications at Kohl’s, said the reorganization would “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 statement says. “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.”
The company said it is offering competitive severance packages and outplacement services to affected employees.
“It is important to note that Kohl’s is in a position of financial strength,” the statement added, noting the company is not closing any stores or offices and will continue to hire in key areas.
“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,” the statement said.
Kohl’s spokespeople did not immediately respond to requests for additional comment.
In January, Kohl’s reported that its comparable sales for November and December were down 0.2% from 2018. The company also said it expected its full year earnings to be at the low end of its $4.75 to $4.95 per share guidance.
“We are managing the business with discipline and we expect to deliver on our earnings guidance for the full year,” said Michelle Gass, Kohl’s chief executive officer, said at the time. “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.
In the first nine months of last year, the company reported at 2.2% drop in net sales to $12.35 billion and net income decreased from $529 million to $426 million.
Kohl’s is scheduled to report is fourth quarter and full year results on March 3.