Saks cuts 90 jobs amid latest cost-cutting efforts

Luxury department store Saks is reported to have slashed 90 jobs among its workforce, building on wider cost-cutting efforts already underway at the retailer.

According to WWD, which cited an internal memo received via an anonymous source, individuals within Saks’ commercial organisation were largely among those impacted, including the merchandising coordinator and digital beauty specialists at Neiman Marcus.

The media outlet said it is understood that the affected jobs represent less than 3 percent of the Saks Global corporate office, and 0.5 percent of the company’s total headcount. Some employees left the business on August 20, while others have moved into a transition period.

The news was said to have been shared in a letter sent to employees by Saks Global president and chief commercial officer, Emily Essner, who said the job cuts were a part of the ongoing integration of Neiman Marcus into the Saks business.

Amid efforts to harmonise the merchandising systems, the company had found an opportunity to further simplify its structure, Essner said, and thus set out to make changes within its brand partnerships, buying and merchandise planning teams.

Meanwhile, in regards to shifts in its beauty team, Essner said Saks’ was “well-positioned to continue to enhance and personalise the shopping experience through other existing offerings” and was focused on “scalable and profitable service strategies”.

In the letter, Essner added: “While these decisions are never easy, they are an expected part of the integration process. I am grateful to these colleagues for their contributions and wish them well in their future endeavours.

“I know that changes like these can feel unsettling, but I want to reiterate my confidence in the commercial team and my excitement for all that lies ahead. Together, we will continue advancing our efforts to transform the luxury shopping experience and deliver luxury artfully curated for every customer.”

Following Saks’ acquisition of the Neiman Marcus Group, the retailer has enacted a number of strategies to cut costs and return to a more stable financial position. Reports of the company, now jointly known as Saks Global, cutting a slew of jobs already emerged earlier this year, when it was said that the business was planning to lay off an estimated 550 employees.

On this latest round of job cuts, FashionUnited has contacted Saks Global with request to comment.