With the continuous slump in sales during the coronavirus pandemic, Kohl’s has decided to reduce its corporate workforce by around 15 per cent. The retailer took a hit amid the COVID19 pandemic and closed more than 1,100 stores in the spring season. Its sales went down by 32.8 per cent in the last six months ending August 1. The cost cutting decision will help the company save more than USD 100 million in annual expenses. Jen Johnson, Kohl’s Senior Vice President of Communications, said that the company took the difficult but necessary decision because of the ongoing pressure of the coronavirus pandemic. The companywide cost saving measure is expected to save millions, it said in a filing with SEC.
The decision has impacted employees of the corporate office in New York and California and Menomonee Falls headquarters. But the company has not revealed the number of the position that will be affected by the decision. The stores that depended on in person visits for about 75 per cent sales in 2019 were the most affected. There are thousands of workers employed as the corporate staff and hence the decision will result in lots of jobs. There were 122,000 workers with the company as full time and part time in different stores and corporate offices in 2019.
Johnson said that Kohl’s will continue to exercise the best discipline for the better management of the company. But this is not an isolated case as there are several retailers that have struggled to survive during the pandemic. According to the United States Census Bureau, the retail and food services sale are down by 2.1 per cent across the country. Clothing and accessories stores are even more affected by the pandemic. They have registered the downfall of 36.5 per cent in comparison to 2019. But the company is hopeful of coming out of the tough situation with long term strategic planning. “With the help of disciplined investment and prudent management, we e are in a good position to make a comeback,” the company said.
