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Menomonee Falls, WI – Kohl’s, the Wisconsin-based retailer, has announced corporate layoffs affecting under 200 employees. This follows the recent closure of 27 stores across 15 states.
The company has faced a challenging year, with third-quarter net sales dropping 8.8% to $3.5 billion. The job cuts and store closures are part of a strategy to improve profitability.
While approximately 4,000 employees work at Kohl’s headquarters, a spokesperson clarified the layoffs impacted fewer than 200 positions, including some unfilled roles. The company declined to provide specific numbers.
Affected employees will receive two weeks’ pay and a severance package. This isn’t the first time Kohl’s has reduced its workforce; the company cut jobs in its credit department in 2024 and at its headquarters in 2023.
These actions come amidst a leadership transition. Former CEO Tom Kingsbury stepped down in January, replaced by Ashley Buchanan, former CEO of Michael’s. Kingsbury acknowledged missteps during his tenure, including reducing inventory and shrinking the fine-jewelry business.
Buchanan, Kohl’s third CEO since 2018, inherits the challenge of revitalizing the retailer. The company has already begun reversing some of the previous inventory decisions.
Kohl’s, like other department stores, is grappling with the changing retail landscape and the rise of e-commerce. While acknowledging the difficulties, Buchanan expressed confidence in the company’s brand and potential for growth.