Hudson’s Bay Co. says it is cutting 2,000 jobs, including some it says were previously announced in February.
Andrew Blecher, a spokesperson for the company, said the majority of job cuts are expected to be in the United States.
The retail giant says the layoffs are intended to save $350 million annually once the plan is fully implemented by end of fiscal 2018.
The company says the savings are required to help offset various challenges it’s facing within the retail sector, which has been beset by store closures with the advent of online shopping.
Richard Baker, HBC’s Governor and Executive Chairman, said the company had a tough quarter.
“While the retail apparel market remains particularly challenging, we are taking steps to adapt, beginning with our Transformation Plan announced today,” Baker said in a statement. “This initiative will reshape our organization to accelerate delivery of a best-in-class all-channel experience to our customers while improving our cost structure.”
As part of the Transformation Plan the company is setting up two separate leadership teams, one in Canada focused on Hudson’s Bay and Home Outfitters, and another team focused on Lord & Taylor in the United States.
Alison Coville has been named president of Hudson’s Bay and will focus on the operations in Canada, while Liz Rodbell will continue in her role as president of Lord & Taylor.
Founded in 1670, HBC is the oldest company in North America.
It has more than 480 stores and employs more than 66,000 people.
With files from The Canadian Press
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