Hudson’s Bay announces 2,000 layoffs

Cuts will offset retail sector challenges and save $350 million annually

Hudson’s Bay Co. announced Thursday it is eliminating 2,000 jobs throughout North America to help offset various challenges it’s facing within the retail sector, which has been beset by store closures with the advent of online shopping.

The retail giant said the layoffs are intended to save $350 million annually once the plan is fully implemented by end of fiscal 2018. Some of the layoffs were previously announced in February, the company said.

“Savings from the changes we have announced today are required to help mitigate the pressures we are facing in the current environment,” Hudson’s Bay CEO Jerry Storch said in a statement after markets closed.

“As we have developed our plan, we have been determined to become not just a leaner company but also a better one.”

The announcement came as HBC released its first-quarter earnings, which showed a net loss of $221 million, more than double the $97 million loss it had in the same period last year. Retail sales were about $3.2 billion, a decrease of $100 million, or three per cent, from the prior year.

Founded in 1670, Hudson’s Bay is the oldest company in North America.

It employs more than 66,000 people and operates more than 480 stores under banners such as the Bay, Saks Fifth Avenue, Lord & Taylor, Gilt, and Saks Off 5th.

Before the announcement, shares in HBC closed down 11 cents, or 1.13 per cent, to $9.62 on 318,378 shares.

The Canadian Press

Just Posted

UPDATE: Poor ventilation likely cause of carbon monoxide incident at Delta farm

All 42 patients have been released from hospital, according to Delta Fire

LETTER: Township has much to do the day before Christmas

A Langley letter writer shares her prose about Township Langley council preparing for Christmas Day.

Santa, Moana drop in on Aldergrove children’s party: PHOTOS

Annual Christmas party for children hosted by Aldergrove Elks

North Langley boys fight to finish ahead of Clayton’s Lord Tweedsmuir

Tsumura Basketball Invitational action wrapped up Saturday at the Langley Events Centre.

Langley families spend time with the man in red

Willows Church hosted a Santa Claus Breakfast Saturday morning, attracting lots of folks.

VIDEO: Goalie of Langley-based Giants kept door shut to U.S. league-leaders

Vancouver G-Men defeated the Winterhawks Tuesday 5-3 at LEC, now 1-0 in Portland Friday night.

Site C decision coming Monday

Premier John Horgan to announce fate of dam project at B.C. legislature

VIDEO: Man frustrated that Vancouver taxi driver won’t take him home to New Westminster

Kuldip Gill says that not being able to get a ride to the suburbs is a constant problem

Legacy of Amanda Todd lives on through B.C. foundation

Todd’s mother Carol stresses the importance of putting the phone down and talking with children

UPDATE: Train hits hydro pole, causes outage near Deltaport

No injuries reported but traffic in and out of Deltaport is blocked

VIDEO: Vancouver Whitecaps acquire star striker Kei Kamara

Kamara has 103 goals and 39 assists in 298 appearances over 11 Major League Soccer seasons

Smartphone pedometers underestimate steps, but valuable health tool: study

UBC researchers found the iPhone underestimated steps by 21.5 per cent

VIDEO: ‘Last Jedi’ premiere kicks off with droids, Daisy Ridley

Latests Star Wars film premiered in style ahead of Dec. 15 theatre debut

Most Read