Nordstrom job cuts affect an estimated 200 workers
Nordstrom will offer severance pay to all employees affected by recent job cuts, after some employees were told they were not eligible for such packages.
Former employees of Nordstrom told the Business Journal that the recent job cuts at the retailer affected 200 people. The layoffs were a combination of layoffs, and what Nordstrom called "performance-based separations."
Nordstrom (NYSE JWN) informed its affected tech employees last week that their jobs would be eliminated. Others were told that they weren't eligible for severance packages, even though they had worked for the company for more than 30 years.
According to an internal email obtained from the Business Journal, on Thursday the Seattle-based firm reversed its decision and offered severance pay to all employees affected.
The message read: "Decisions affecting our people are not easy, and we acknowledge that this news was challenging."
Nordstrom's termination plan is based on the management level of employees and their years with the company. The health benefits are available for between three months to a year. The lowest-level corporate employees receive one week's pay for every year of work. The highest package includes at least three-months salary.
The job cuts last week affected roles from project managers to head engineers in offices across the country. Nordstrom's Seattle HQ is home to a large number of corporate employees.
The company claimed that the cuts were needed "to be more agile and to operate better."
Nordstrom has made the job cuts a month after closing its Canada operation, which resulted in the layoff of an estimated 2,500 workers as the company focused on its U.S. operations. The job cuts come a month after Nordstrom announced that Walmart had been named as its new chief technology officer and information officer.
The retailer has had a disappointing period as the consumer's spending is slowing and their stores are overstocked, particularly with lower-priced products that don't sell as well as premium brands. Nordstrom's management has been forced to lower its fiscal forecast multiple times over the past year.
Executives at the company say that they have a plan to get rid of excess inventory and weather financial uncertainty.