Hudson's Bay Co. to Lay Off 2,000 Workers
Hudson's Bay Co. (HBC) said this week it will eliminate about 2,000 positions as part of restructuring efforts. MarketWatch reports the Canadian retail corporation, which also owns Saks Fifth Avenue, Lord & Taylor, and Gilt, had announced plans to review it operations in late 2016, saying it needed to be prepared to meet the challenges of an evolving retail environment. This past Thursday, HBC disclosed what those changes would involve. It's estimated the cuts will help HBC save over $350 million by the end of its 2018 fiscal year.
Total Retail's Take: Restructuring has been a popular theme for retailers in 2017, particularly department store chains. HBC joins the likes of Sears, Macy's and many more that have announced store closures this year. Hudson's Bay, which has been challenged with declining sales, is hoping the reorganization of the company yields cost savings and an improved bottom line. However, those efforts are further clouded by a struggling luxury retail sector.