Lowe’s Is Laying Off 125 More Employees This Year
One of the biggest home-improvement specialty retailers, Lowe’s Companies, Inc., is cutting 125 tech jobs at its corporate headquarters in Mooresville, North Carolina and moving them to India.
The latest job cuts mark the company’s third round of layoffs in less than six months in 2017.
The retailer is laying off tech workers who were responsible for various information technology (IT) job functions at its headquarters. In turn, the company will be hiring their replacements in Bangalore, India, which is touted as the “Silicon Valley of India.” Lowe’s currently employs as many as 1,000 employees in India for IT and analytics services.
The company’s Chief Information Officer, Paul Ramsay, sent out a memo after the layoff announcement to explain the reasons behind the cuts. The IT team was informed that the layoffs were part of the company’s restructuring efforts that have been underway for several years. According to Ramsay, Lowe’s is aiming to diversify its workforce in order to create a global team that can respond to changing customer needs in a fast-paced 24×7 retail environment.
The retailer has been massively downsizing its workforce since the last half of 2016. Nearly 96 corporate tech jobs were eliminated in October 2016. Soon after that, Lowe’s announced another round of massive job cuts in January of this year, when roughly 2,400 full-time employees working at the store level were sent home.
Layoffs Come as Lowe’s Lags Behind Competition
Within just a month, more than 500 additional corporate layoffs followed. In February, a total of 430 employees were handed pink slips at the company’s headquarters in Mooresville, while 70 support staffers were let go in Wilkesboro.
The latest layoffs have been announced within a month after the company reported lackluster earnings numbers for the first quarter of 2017. The retailer’s comparable stores sales grew by 1.9%, which lagged its competitor’s growth by a wide margin. Lowe’s directly competes with its bigger rival, the Atlanta-based Home Depot Inc, in the home-improvement retail industry. By contrast, Home Depot Inc saw its comparable stores sales growing by 5.5%.
America’s retail sector has largely seen a decline this year, with many retailers losing sales, laying off workers, and going out of business. The surviving retailers are making swift moves to adapt to a fast-evolving retail landscape that is gradually being dominated by online retailers like Amazon.com, Inc. and eBay Inc.
“Lowe’s lays off over 120 tech workers in Mooresville, will send jobs to India,” The Charlotte Observer, June 7, 2017.
“Lowe’s Lags Behind Home Depot on Quarterly Performance,” NASDAQ, May 29, 2017.