Nordstrom to Lay Off More Than 200 Employees in Iowa Fulfillment Center
Nordstrom will lay off more than 200 employees, the company confirmed to FN.
The department store retailer is letting go 222 employees in a fulfillment center in Cedar Rapids, Iowa in October, according to a WARN notice confirmed by the company. The center previously employed over 1,100 people, the company said.
“We have made the difficult decision to reduce our workforce at our Midwest fulfillment center in order to better align with the current needs of our business,” a company spokesperson said in a statement. “We recognize the impact these changes have on our team members and are committed to taking care of our people as we work through this transition.”
The layoffs comes as the company makes changes to its supply chain network, which involves shifts in its regional fulfillment system, the spokesperson said. As such, the company has decided to shift some product volume from this Cedar Rapids facility to other locations.
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Nordstrom in August lowered its yearly guidance, noting a slowdown in customer traffic and demand. The Seattle-based department store reported net Q2 earnings of $126 million, up from $80 million the same quarter last year. Net sales also increased 12% in the quarter to $3.99 billion, versus $3.57 billion in the same period last year. Despite a slowdown in demand, net sales for Nordstrom Rack in Q2 increased 6.3% to $1.22 billion.
The cuts come amid a wave of layoffs across the retail industry. Dr. Martens will carry out layoffs between Sept. 1 and Oct. 31 as it closes its distribution center in Portland, Ore., leaving 71 employees without a job. In a statement to FN, Dr. Martens said the closure came as a result of an investment in a new distribution center in Los Angeles, a larger space meant to support the brand’s growth in the U.S.
Earlier this week, Gap Inc. said it was cutting 500 corporate roles across offices in San Francisco and New York, as well as in Asia. Earlier this month, Rent the Runway announced it would lay off about a quarter of its staff, joining companies like Walmart, Allbirds, Shopify and more announcing similar cuts.
