Chico’s FAS announced it will eliminate 200 corporate and field leadership jobs. The women’s fashion retailer is continuing a campaign to reduce costs due to lackluster sales: net sales dropped by 7.3% in the second quarter compared to Q2 2015.
The report noted that Chico’s has made progress on cost reductions and operating efficiency initiatives in order to improve its supply chain and optimize marketing expenses. And while the company has created new positions in digital and business analytics departments, Chico’s decided to cut 200 jobs in order to “create a flatter organization that should be more nimble and responsive to customer needs.”
“We are pleased with our second quarter performance which reflected continued progress in our efforts to transform our company to win in the future,” said Shelley Broader, President and CEO of Chico’s in a statement. “The initiatives we announced last quarter are already driving cost savings and improving our operating efficiency. We expect that the more streamlined organizational structure, combined with the other cost reduction and operating efficiency initiatives, will result in a strong, scalable foundation that is well-positioned for long-term, profitable growth and value creation.”
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It seems as though cutting jobs has been the go-to tactic for many retailers looking to save on costs. Walmart recently eliminated approximately 7,000 back-office positions, while Macy’s plans to cut about 15% of its store base in the wake poor sales results.
