Luxury Department Store Chain Slashes 225 Jobs

Entrance to Neiman Marcus at the Ala Moana Center
iStock.com/Eric Broder Van Dyke

Neiman Marcus Cuts Jobs Amid Reorganization Efforts

A department store chain known for selling designer apparel, shoes, handbags, and luxury beauty products—Neiman Marcus Group Ltd LLC—has announced that it will be cutting about 225 jobs as part of its reorganization plan. Employees across all brands and operating divisions in the company will be affected in the layoffs.

At the same time, the Dallas-based luxury retailer has indicated that it is assessing the future of its “Last Call” outlets, which are clearance centers that sell designer items at discount prices. Neiman Marcus currently operates 37 Last Call outlets. The company has hinted that more of these stores could see closures (and subsequent layoffs). The company has already closed three Last Call stores this year.

Neiman Marcus joins the list of dozens of other brick-and-mortar retailers that are struggling to attract American consumers following the rise of digital retailers, primarily Amazon.com, Inc. and eBay Inc.

The company has significantly reduced its workforce over the past three years, through both layoffs and attrition in various divisions. The retailer had more than 16,500 employees in 2014, which shrunk to a little over 15,000 in 2015, and further decreased to 14,300 in 2016. As of now, the total employee headcount hovers over 14,000.

In the most recent quarter, the company reported a loss; in the same period a year ago, the company had made a profit. The retailer has witnessed a significant drop in its store traffic, while seeing an improvement in its online traffic.

The company is now making efforts to ward off competition by optimizing both its physical and digital presence. The company stated, “We are also assessing our Last Call portfolio to optimize our store footprint and ensure we have the right mix of brick and mortar and online stores to meet our customers’ evolving demands.”

The latest round of layoffs follows as the company struggles with a debt burden of more than $5.0 billion. In the last decade, the company has been sold twice. The leveraged buyouts have led the company to rack up a huge pile of debt.

 

Sources

Neiman Marcus to cut 225 jobs, assess Last Call’s future,” The Dallas News, July 26, 2017.

Neiman Marcus cutting 225 jobs as it streamlines operations,” Dallas Business Journal, July 26, 2017.

Categories: Job Cuts, News

Advertisement