Kohl's Slashes 10% Corporate Jobs, Names New CEO

Department store retail chain Kohl's Inc. KSS is reducing its corporate staff by about 10%, following the appointment of a new CEO.

The move affects fewer than 400 positions, with more than half of the reductions coming from unfilled roles. The remainder of the cuts will be from positions located at the company's headquarters in Menomonee Falls, Wisconsin.

The move comes after the company appointed retail industry veteran Ashley Buchanan as the new CEO, effective January 15, 2025.

Buchanan had served as CEO of Michaels Companies since 2020. Buchanan also held various senior leadership positions at Walmart Inc WMT and Sam’s Club over his 13-year tenure.

Kohl’s intends to close its San Bernardino E-commerce Fulfillment Center (EFC) when its lease expires in May. The company will also shutter 27 underperforming stores by April.

In 2023, the retailer employed a total of 96,000 people, comprising 36,000 full-time and 60,000 part-time staff. These recent layoffs are aimed at enhancing the company’s efficiency, reported the Wall Street Journal.

The job cuts come in as the company struggles to boost its revenue. In third-quarter of FY24, Kohl’s reported a net sales decline of 8.8% year-over-year (Y/Y) to $3.507 billion, missing the consensus of $3.638 billion.

Comparable sales for the quarter decreased 9.3% and an earning of 20 cents which also came under the street view.

The company's former CEO, Tom Kingsbury acknowledged that sales in core businesses such as apparel and footwear sectors remained weak even as the company gained with categories including Sephora, home décor, and gifting.

Additionally, the retailer also slashed its outlook for FY24 sales from a decline of (4)% – (6)% to (7)% – (8)%. comparable sales is also expected to decline (6%) – (7%).

Price Action: Kohl’s shares are trading higher by 0.44% at $13.62 in premarket at the last check Wednesday.

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