Nordstrom, Inc. (NYSE:JWN) declared on Monday that it shared with its staff that in order to frequently evolve with anticipations of its consumers, make sure it is best positioned to respond to current business environment, and meet long-term growth plans, firm is making a number of changes to its operating model. Nordstrom is expecting that 350 to 400 positions will be eliminate through a phased approach.
These positions will mainly be in its Corporate Center and regional support teams, and process should be completed by end of the Q2. In an effort to minimize impacts on current employees, firm will first look at options for example closing unfilled open positions. Employees whose positions are eliminated will receive separation pay and benefits. These changes estimated to generate savings of around $60M in fiscal 2016.
Changes to operating model are division of firm’s broader strategic plans to strengthen its foundation for future growth and get better productivity and service. The firm has before shared that it is enduring to make fundamental changes to serve consumers improved by leveraging its enterprise capabilities. The Initiatives comprise a new operating model in its Technology group focused on strengthening its ability to deliver on e-commerce and digital initiatives, as well as proactively addressing opportunities to improve supply chain and marketing effectiveness.
The co-president, Nordstrom, Inc, Blake Nordstrom stated that they will never change their commitment to serving consumers, but recognize how they want to be served has been changing at an increasingly rapid pace. He added, meeting their consumers’ expectations means they must continually evolve with them. They see opportunities to create a more efficient and agile organization that ensures they are best positioned to achieve their goals.
The financial impact of these strategic initiatives has been incorporated in the firm’s financial outlook that was provided on February 18, 2016.
Taking a short look on shares of Nordstrom Inc. (NYSE:JWN), it rose 1.22% to closed at $52.33 with a share volume of 1.92 million. The stock is going forward its 52-week low with 16.91% and moving down from its 52-week high price with -29.77%. JWN last month stock price volatility remained 2.49%. JWN attains analyst recommendation of 2.70 with week’s performance of 1.10%. The firm has total debt to equity ratio measured as 3.22.