Fashion retailer Nordstrom has announced operating model improvements to better support customers’ changing expectations. The company is expecting that approximately 350 to 400 positions will be reduced in its Corporate Centre and regional support teams, and the process should be completed by the end of the second quarter. These changes are estimated to generate savings of approximately US $ 60 million in fiscal 2016.
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However, in an effort to minimize effects on current employees, Nordstrom will first look at options such as closing unfilled open positions. Employees whose roles are eliminated will receive separation pay and benefits. The company said in a press release that changes to the operating model are part of its broader strategic plans to strengthen the foundation for future growth and improve productivity and service. Measures include a new operating model in its Technology group focused on strengthening its ability to deliver on e-commerce and digital initiatives, and proactively addressing opportunities to improve supply chain and marketing efficiency.
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“We will never change our commitment to serving customers, but recognize how they want to be served has been changing at an increasingly rapid pace. Meeting our customers’ expectations means we must continually evolve with them. We see opportunities to create a more efficient and agile organization that ensures we’re best positioned to achieve our goals,” averred Blake Nordstrom, Co-President, Nordstrom.
