Nordstrom is laying off 222 employees, the latest retailer to reduce its workforce

Nordstrom is shedding up to 222 employees at its distribution center in Iowa, the latest retailer to cut jobs this month.

The Seattle-based retailer filed a so-called WARN on Tuesday, noting that it plans to carry out mass layoffs at its Cedar Rapids warehouse through Oct. 18. US labor law requires employers to give 60 days’ notice of mass layoffs.

Nordstrom said the layoffs would help reduce suppliers’ costs.

Nordstrom executives said in August the company wants to increase its delivery speed and expand in-store merchandise selection. It also expanded its same-day and next-day pickup services.

About 40% of Nordstrom’s customers are on the West Coast, while distribution centers are in Iowa and Pennsylvania, analysts at Cowen said in a note to customers. Cowen analysts said the department store retailer wants to rely more on a California facility to handle its full-line and rack brands.

Nordstrom lowered its full-year guidance in August, citing a decline in consumer demand and traffic. It reported profit of $126 million for the second quarter, up $80 million from the second quarter last year.

The retailer’s net sales also rose 12% to $3.99 billion from $3.57 billion in 2021. Nordstrom Rack saw a 6.3% jump to $1.22 billion in the second quarter compared to the same period last year.

Nordstrom shares fell $0.74 a share, or 4%, to $17.64 in afternoon trade on Friday.

Other retailers have also recently announced layoffs. Gap earlier this week announced 500 job cuts at companies in San Francisco, New York and Asia.

dr Martens will also lay off employees as part of the closure of a distribution center in Oregon. Rent the Runway announced in early September that it was laying off about a quarter of its workforce. Shopify laid off 1,000 employees in July, and Walmart also reduced its corporate workforce by 200.

Related Articles Nordstrom is laying off 222 employees, the latest retailer to reduce its workforce

Fry Electronics Team

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