Nordstrom is cutting about 400 jobs to save $60 million

Nordstrom cutting 400 jobs

Nordstrom will cut between 350 and 400 jobs in an attempt to cut $60 million in costs.

The company, like many American retailers, has been suffering since last summer when it first reported sluggish sales.

Co-president Blake Nordstrom admitted executives couldn’t pin down why customers weren’t shopping. “We’re not economists, we’re merchants,” he told investors in November.

Many retailers were hurt by a warmer than normal winter which cut into winter clothing sales.

Nordstrom shares plummeted by about 32% in 2015 but have climbed by 15% in 2016 thanks to strengthening sales.

On Monday, the Seattle-based company said the cuts, which will be completed by July 2016, will primarily affect positions at its headquarters and regional offices and not on its sales floor.

It added that employees “whose roles are eliminated will receive separation pay and benefits.”

Nordstrom employs nearly 72,500 full and part-time employees and operates 323 Nordstrom and Nordstrom Rack stores across 39 states.

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The company says it plans to use its savings to stay competitive in an online marketplace that is growing in importance for all retailers.

Both Walmart and Macy’s have already announced in 2016 that they will cut thousands of jobs.

Written by Tammy Johnson

Tammy Johnson

Tammy Johnson is the Retail Editor at BusinessPundit. She focuses on Fortune 500 retail company's and disruptive brick-and-mortar and e-commerce companies that are changing the retail landscape.