US department store chain Kohl’s has revealed that it reduced its corporate workforce by nearly 15%.
This action will generate annual expense savings of approximately $65m as per a regulatory filing. It will affect corporate and open jobs in the Milwaukee area, New York City and California.
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The decision is part of the company’s broader plan to reduce costs by more than $100m on an annualised basis.
Additionally, the retailer said that the actions have been taken to further align its cost base in response to the business impact due to Covid-19 pandemic.
Further, the pre-tax costs associated with the personnel move could be approximately $23m. The company noted that they will record the majority of the actions in the third quarter of this year.
The Business Journal quoted Kohl’s communication senior vice-president Jen Johnson as saying: “We put a great deal of thought into this decision and have offered a competitive severance package and outplacement services to help all affected associates as they transition to their next step.
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By GlobalData“We sincerely thank these associates for their contributions and years of service at Kohl’s.”
Last month, Kohl’s reported that its total revenue fell by 23.1% to $3.41bn in the second quarter ended 1 August.
The retailer closed all its stores in March due to the pandemic and reopened them over a ten-week period in Q2 with safety procedures in place.
In February, the company already axed 250 jobs as part of its restructuring programme.
