Kohl’s Corp., the American fashion retailer, has cut down its corporate workforce by 15 per cent in its endeavour to rein in costs.
The fashion retailer said that the move will help it annually save US $ 65 million, but did not say how many workers are going to be impacted by the decision.
It also expects to record pretax charge of around US $ 23 million related to layoffs and related cost savings – mainly in Q3.
Kohl’s is one of those several fashion retailers that are cutting costs to combat the sudden change in consumer spending during these tough times.
The decision to cut the corporate workforce to control costs comes in the wake of a poor second quarter that saw Kohl’s sales go down.
The sales during the second quarter were just US $ 3.2 billion, which is a fall of 23 per cent from what it was during the same period in the previous year.
Several analysts and experts believe that recovery for most of the retailers will be prolonged and the performance of Kohl’s is distinct indication of that. Macy’s had also recently announced nearly 4,000 job cuts and there will be more such news to hear for some more time.
Majorly known for its apparels, footwear and bedding, amongst others, Kohl’s generated revenue of US $ 20.229 billion in 2018.