Nordstrom axes 150 technology jobs
Nordstrom has cut 150 jobs from its technology group
US upscale fashion retailer Nordstrom has confirmed it has cut 120 jobs from its technology group less than a month after recording a double-digit decline in fourth-quarter net profit.
A spokesperson for Nordstrom told just-style the 120 employees were informed they would no longer have jobs with the company last week.
In February, the company posted a 29.4% decline in fourth-quarter net profit to US$180m, while sales increased 5.2% to $4.1bn.
Gross margin fell 184 basis points to 34.8%, primarily due to increased markdowns from lower than planned sales and in response to an elevated promotional environment during the holiday season.
At the time, Conlumino analyst Carter Harrison described the results as "lacklustre", adding that this year will be one of "treading water" for Nordstrom as it continues to build its business in what has become a much more challenging retail environment.
Nordstrom is among several US retailers that have announced job cuts this year. Just last month, women's wear retailer Bebe Stores revealed it was cutting 14.6% of its total workforce, including design, merchandising and production positions.
In January, Macy's announced it would be laying off thousands of workers in a round of cost reductions designed to save the department store operator around US$400m. In the same month, US teen apparel retailer Aeropostale said it would implement an "aggressive" new cost reduction programme that would result in the loss of 100 jobs as it looks to return to profitability.
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