Kohl’s Slashes Jobs in Reorganization Plan
Kohl’s Corp. is cutting jobs in a company reorganization after it suffered a disappointing holiday season.
Comparable-store sales dropped by 0.2% in the important November and December months, which led Kohl’s to revise its fiscal 2019 earnings guidance to the low end of its previously announced guidance range of $4.75 to $4.95.
Now the department store retailer is eliminating around 250 corporate-level positions, Kohl's SVP of Communications Jen Johnson said in a statement. The reorganization “will empower decision-making, reduce management layers, streamline communications and drive greater efficiency in many areas of our business,” she said.
The reductions affect workers at the Menomonee Falls, Wisconsin, headquarters; offices in New York and California; and in other regional positions, USA Today reported.
"The departures include removing a layer of regional store leadership roles and positions, restructuring teams in our merchant organization, and changes to other positions in our corporate offices," Johnson said. “We put a great deal of thought and planning into this decision and have offered a competitive severance package and outplacement services to help all affected associates as they transition to their next step.”
In her statement, Johnson noted that Kohl’s isn’t closing stores or corporate offices and will continue to hire in key areas and to invest in its stores, technology and strategic growth initiatives.
“It is important to note that Kohl’s is in a position of financial strength,” Johnson stated. “The organizational changes we’ve made are driven by the evolution of our strategic business priorities to create a more agile and empowered organization to support our long-term sustainable growth.”
Yael Cosset Takes a Seat at the Board
Earlier this month, Kohl’s board of directors increased the size of the board to twelve members and appointed Yael Cosset, SVP, CIO of The Kroger Co., to fill the new seat. Cosset has been appointed to a term expiring at Kohl’s 2020 annual shareholders meeting and will be standing for election by Kohl’s shareholders at that time. He will initially serve on the board of directors’ governance and nominating committee.
“Yael is a seasoned executive leader who brings technology and digital expertise with notable retail and consumer brands,” said Frank Sica, Kohl’s chairman. “This digital experience and his deep understanding of customer analytics, innovation and transformation in the retail sector will be valuable assets to Kohl’s, and we look forward to his contributions to the board."
Prior to joining Kroger, Cosset held senior management positions at dunnhumby Ltd., a customer data science and consulting services firm, having most recently served as global CIO from 2010 to April 2015. Prior to dunnhumby Ltd., Cosset held senior management positions at MicroStrategy Incorporated, a business intelligence and analytics enterprise software company.