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Hudson’s Bay to axe 265 jobs in North America

Published 30 September 2015

Canadian department store chain Hudson’s Bay has plans to axe 265 jobs at its head office and corporate offices in North America, as part of its strategy to save costs.

Hudson's Bay

The consolidation of corporate functions will save retailer will CAD75m ($55.86 m) annually. It will bear a CAD20m ($15m) charge in the third quarter.

A company spokesperson was quoted by The Wall Street Journal as saying that the layoffs would account to less than 1% of the total workforce.

The layoffs would affect only in corporate functions of accounting, IT and finance. Most of the jobs will be cut at its US operations.

The company is taking initiatives for better growth prospects in future and improved financial performance. The plans will see the company focusing on areas that have proved to be lucrative and provide significant return on investment.

The North American business turnaround plan will include the establishment of centers for customer relationship management, creative, and human resources functions that would work in association with the current departments of digital, information technology, legal, logistics, and real estate.

Consolidation of core business functions will enable the company to have a productive and efficient operations. It plans to use resources towards customer-oriented aspects of the business.

The company also intends to make technological advancements and speed up the consolidation to one common platform across different company banners under the leadership of the newly hired executives - chief information officer Janet Schalk and HBC digital executive vice president Dion Rooney.

In the recent years, Hudson's Bay has made several acquisitions - in 2013, the retailer bought Saks for about $2.9bn, and earlier this year, it announced the takeover plans of German retailer Galeria Kaufhof for €2.42 bn ($2.72 bn) and this acquisition is expected to be completed in the third quarter of this fiscal year.

Meanwhile, Hudson's Bay plans to open seven Saks Fifth Avenue locations and 25 OFF 5TH locations in 2016 in Canada.

Image: Hudson's Bay Winnepeg building. Photo: courtesy of KrazyTea/Wikipedia.