Saks Global Reduces Workforce Again Amid Integration Process
Saks Global, which acquired Neiman Marcus Group at the end of last year, is reducing its workforce again. The company is making cuts that address duplicate and overlapping roles, although it would not say how many positions are being eliminated. The reductions are in departments including commercial, finance, operations, human resources, technology, and transformation teams. Also, it includes store teams that support Saks Fifth Avenue and Neiman Marcus.
Background of the Acquisition
Saks Global is working on integrating the companies as it navigates a changing luxury-retailing landscape. Last month, the company said it was rethinking what it will do with the historic downtown Neiman Marcus store over the next several months after earlier saying it would be closing the store at the end of March. The organizational changes were anticipated as part of the multi-year integration process as the company works toward capturing $500 million in “synergies” over the next few years, it said.
Impact on Employees
The personnel changes primarily affect leadership, functional managers, and individual contributors across the business. “We are continuing the multi-year integration process following our acquisition of Neiman Marcus Group,” the company said. ”As a part of this, we have eliminated certain roles.”
“Every decision has been and will be made deliberately and with our overall strategy in mind,” the company said. “This means they are based on careful reviews of individual performance and contributions, with the goal of ensuring that we have people with the right experience and skills in the right roles.”
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Saks Global announced in December that it had finalized its acquisition of Neiman Marcus Group for an enterprise value of $2.7 billion. The company is also cutting over 400 workers in a distribution center in Tennessee, according to a state document.
“As we come together as Saks Global, we are continuing to take steps to optimize our fulfillment network to ensure we are best positioned to serve our customers,” the company said.
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Conclusion
In conclusion, Saks Global is undergoing significant changes as it integrates Neiman Marcus Group into its operations. The company is working to eliminate duplicate roles and optimize its fulfillment network to better serve its customers. While the changes may be challenging for some employees, the company is committed to making deliberate decisions that align with its overall strategy.
FAQs
Q: Why is Saks Global reducing its workforce?
A: Saks Global is reducing its workforce to eliminate duplicate and overlapping roles as part of its integration process with Neiman Marcus Group.
Q: How many employees will be affected by the workforce reduction?
A: The company did not disclose the exact number of employees who will be affected by the workforce reduction.
Q: What departments will be affected by the workforce reduction?
A: The reductions will affect departments including commercial, finance, operations, human resources, technology, and transformation teams, as well as store teams that support Saks Fifth Avenue and Neiman Marcus.
Q: Is Saks Global closing any stores?
A: The company is rethinking what it will do with the historic downtown Neiman Marcus store, but no final decision has been made.
