Abercrombie & Fitch Cutting 150 Jobs
Abercrombie & Fitch has laid off 150 people at its New Albany, Ohio headquarters, the most recent in a wave of bad news among the nation's struggling retailers. The layoffs were announced to the staff Wednesday, a spokeswoman for the retailer said. There are about 2,200 employees at Abercrombie's corporate offices. The company made the cuts "to ensure we're structured appropriately for the current retail environment," the spokeswoman said. Abercrombie has struggled in recent years at both of its two main brands, Abercrombie & Fitch and Hollister. In November's third-quarter earnings report, for example, the company announced that same-store sales fell for the third straight quarter and profit dropped 81 percent. Over the past six years, Abercrombie & Fitch has shut 350 locations around the world, and that process is expected to continue.
Total Retail's Take: Layoffs, unfortunately, aren't new news to the retail industry. They come after months of downbeat news among retailers, including a bankruptcy filing by The Limited, as well as the bankruptcies of PacSun, Aeropostale, Sports Authority and American Apparel. Other retailers, such as Sears and Macy's, have reported disappointing earnings and plan to shutter hundreds of stores.