As part of a change in its tech strategy, American upscale fashion retailer Nordstrom has recently announced 120 job cuts in its technology team. The recent job cuts, under the garb of team structuring, is in addition to 10 layoffs from the technology team that were confirmed earlier this month.
According to Nordstrom, the restructuring of the technology team is part of a larger shift in its business plans regarding technology.
Company spokesperson Tara Darrow said, “We have had people impacted at the vice-president, director and senior director levels, among other levels.” She added, “Restructuring the technology team was just a part of a larger effort that we had undertaken to ensure that the organization’s operating model is best prepared to support our company’s future growth goals and provide us with a competitive advantage moving forward .”
However, the latest cuts did not affect any upper management level positions, she added.
Apart from these layoffs, some executives have reportedly left the tech team during these last seven months when the layoffs occurred. Those include the VP of technology, VP of enterprise architecture and system development and support; besides executive VP of selling technology, who in fact retired.
The restructuring follows Nordstrom’s disappointing $300 million investment in tech and e-commerce of last year that resulted in falling of net income. In February, the company reported US$180 million in quarterly net income, or nearly 30 per cent below the same period a year ago.
