Saks International will slash about 150 jobs throughout a number of departments because it combines with newly acquired Neiman Marcus, The Put up has realized.
The retail large — which additionally owns Saks Fifth Avenue, Bergdorf Goodman and Saks OFF 5TH — will lay off staff from finance, authorized and operations, human sources and expertise departments, based on an inner memo despatched to staffers that was seen by The Put up.
The layoffs quantity to round 5% of Saks International’s US company workforce, a supply with information informed The Put up.
Different cuts at Saks International — the American division of the Canadian holding firm HBC — embody retailer groups that help Saks Fifth Avenue, Neiman Marcus and Saks OFF 5TH.
Bergdorf Goodman was spared pink slips, for now.
“There will be additional changes to our teams as we continue to integrate our business,” Saks International CEO Marc Metrick wrote.
Neiman Marcus staff have been bracing for layoffs for the reason that acquisition was introduced final summer time, The Put up beforehand reported.
“There’s no way all of us are needed,” a Neiman govt beforehand informed The Put up. “We’re all trying to stay focused on our jobs while facing reality that at some point there will be decisions made about merchants, planners, finance, human resources, IT, legal, marketing and all other functions.”
Some fretted over why the cuts weren’t introduced final week when Saks International stated it will be closing Neiman Marcus’ century-old flagship retailer in downtown Dallas.
“There’s a feeling that it’s not coordinated and that it’s death by a thousand cuts,” one supply near Neiman Marcus informed The Put up on Tuesday.
A Saks International spokesperson stated in an announcement that the corporate is “continuing the integration process following our recent acquisition of Neiman Marcus Group by consolidating functional leadership, clarifying key decision makers and beginning to simplify our organizational structure.”
The mum or dad firm may “lose more sales to peers Bloomingdale’s and Nordstrom this year as it repositions the newly merged units, shutters select stores and seeks to repay past-due vendor balances,” Bloomberg Intelligence analyst Mary Ross Gilbert warned in a latest analysis be aware.
Saks International blamed the Dallas retailer closure on “circumstances beyond our control,” based on final week’s memo from Metrick that was obtained by The Put up. The shop will shut for good on March 31.
A supply near the state of affairs revealed Saks was relinquishing the shop over a weird wrestle with the owner over a parcel of land situated beneath the shop’s escalator.
Saks and Neiman Marcus shook fingers on a blockbuster $2.65 billion merger in July. Saks proprietor HBC’s talks of buying the rival division retailer have been first reported by The Put up in 2023.
The deal was struck as spending on luxurious items have been slowing down.
