Kohl’s Corp. is cutting 15 percent of its corporate workforce, realigning costs to the COVID-19 realities.
The reductions will lead to $65 million in annual savings and pretax costs of about $23 million, most of which the company will log in the third quarter. Together with a prior restructuring in February, the company has trimmed more than $100 million in annualized costs this year.
Kohl’s declined to specify how many people were losing their jobs in the latest change, but last year the company had 37,000 full-time associates and 85,000 part-time associates across the entire organization.
Jen Johnson, senior vice president of communications for Kohl’s, said the layoffs would impact the company’s Menomonee Falls, Wisc., headquarters as well as its New York City and California offices.
“Over the past several months, Kohl’s has taken several decisive actions to navigate through the COVID-19 crisis,” she said. “Our decisions have prioritized the health and safety of our customers and associates, and preserving the financial position of the company.”
Johnson said the company is offering a “a competitive severance package and outplacement services to help all affected associates as they transition to their next step.”
“Kohl’s continues to maintain a strong balance sheet and cash position to help navigate through the crisis, and will continue to exercise financial discipline through diligent expense and inventory management,” she said. “Through prudent management, disciplined investment in key areas, and smart long-term strategic planning, we are well positioned to capitalize on evolving customer behaviors and the retail industry disruption. The organizational changes we’ve made and keen focus on our strategic business priorities will continue to support our long-term success.”
The reductions at Kohl’s, which is looking to grow across active and other categories, are largely in keeping with cuts made at other companies across the industry.