Kohl’s has reduced its corporate workforce by approximately 15% to help it weather the impact of the COVID-19 pandemic, according to a filing with the Securities and Exchange Commission. The layoffs are expected to save the retailer $65 million annually.
Kohl’s closed all of its stores in mid-March after initially resisting calls for non-essential retailers to temporarily shut down. Upon reopening in early May, the retailer took strict precautions and adapted with steps including:
- Hiring a third-party service for additional cleaning;
- Removing fixtures to increase social distancing space;
- Requiring all associates to wear PPE; and
- Launching curbside pickup seven days a week.
Like many brick-and-mortar retailers, Kohl’s suffered in Q2 2020: overall sales fell 22.9% despite 58% growth in the e-Commerce business., with the losses attributed to stores being closed for 25% of the period. However, Kohl’s still has $2.4 billion in cash on hand, and the company expects to “capitalize on evolving customer behaviors and the retail industry disruption” in the coming quarters, according to CEO Michelle Gass in a statement.