US department store retailer Kohl’s has cut about 250 positions as part of a restructure designed to create a more customer-centric focus and position the company for long-term success.

The reorganisation, Kohl’s says, will “empower decision-making, reduce management layers, streamline communications and drive greater efficiency in many areas of our business.”

It includes removing a layer of regional store leadership roles and positions, restructuring teams in the company’s merchant organisation, and changes to other positions in its corporate offices.

In a statement shared with just-style, Jen Johnson, Kohl’s SVP of communications, says the company put a “great deal of thought and planning” into this decision and has offered a “competitive” severance package and outplacement services to help all affected associates.

She adds: “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 organisational changes we’ve made are driven by the evolution of our strategic business priorities to create a more agile and empowered organisation to support our long-term sustainable growth.”

The restructure comes after Kohl’s reported a 0.2% drop in comparable sales for fiscal November and December 2019 combined over the same period last year. Based on the holiday sales performance, the company says it expects fiscal 2019 diluted earnings per share to be at the low end of its previously announced guidance range of US$4.75 to $4.95. 

Meanwhile, in its most recent quarterly update, Kohl’s booked a 0.1% slip in total revenue to $4.6bn for the third quarter, while reported net income fell 24% to $123m from $161m in the prior-year period. Comparable sales increased 0.4%.