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Saks Fifth Avenue's owner, HBC, to cut 2,000 jobs in North America

Key Points
  • Hudson's Bay Company, the parent of Saks Fifth Avenue and Lord & Taylor, announced it will be cutting around 2,000 positions in North America.
  • The Canadian company's shares were down about 1 percent after hours Thursday.
Hudson's Bay to cut 2,000 North American jobs

Hudson's Bay Company disclosed Thursday that it will be cutting around 2,000 positions within North America as part of a major restructuring effort.

The department store operator said this move would help the company save more than C$350 million annually ($259 million). This includes the C$75 million in savings that the company previously announced in February.

Shares of the Canadian company were down about 1 percent after hours on Thursday.

"We know we can do better, and we are taking bold decisive action," Chief Executive Jerry Storch said in a statement.

HBC owns several major department stores, including Hudson's Bay, Saks Fifth Avenue and Lord & Taylor.

Department stores across North America have felt the brunt of changing consumer habits — in particular, a shift toward online shopping.

"We are reallocating resources to accelerate the opportunity we see online, as we run our brick and mortar operations more efficiently," Richard Baker, governor and executive chairman of HBC, said in a statement Thursday. "Our team is taking the right steps to optimize our North American business and create efficiencies by leveraging the scale of our company. At this critical moment of change in the retail industry, I believe in the future of our all-channel model and we are adapting to meet the evolving needs of our customers."

($1 = 1.3501 Canadian dollars)

— Reuters contributed to this report.