U.S. luxury retailer Saks Global is cutting 16 percent of its headquarters jobs as part of an ongoing restructuring plan. The plan aims to optimize the company’s presence.
Company representatives confirmed the news to WWD. According to the report, around 640 employees are affected. This represents four percent of Saks Global’s total workforce. The layoffs do not affect employees in stores, distribution centers and other facilities.
However, the company said that some senior management members are also affected. However, there will be no changes to the global leadership team.
“As we position Saks Global for future growth as a leading multi-brand retailer in the luxury segment, we are focusing our resources on ensuring a profitable business in service of our customers, brand partners and other stakeholders,” said Goeffroy van Raemdonck, Chief Executive Officer (CEO), in a statement.
He added that the decision to make the layoffs was difficult. However, the changes are essential to support the future needs of the business, which will be operationally leaner.
The move is related to Saks Global’s Chapter 11 proceedings. This was initiated on January 13th with committed debtor-possession financing of $1.75 billion.
Since then, Van Raemdonck said, the team has “successfully implemented a number of strategic measures to prepare Saks Global for long-term success.” In addition, “sales and inventory results continue to exceed internal plans.”
In addition, the company has secured committed capital to ensure liquidity until the restructuring process is completed. This is expected to be completed this summer.
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