Pure Beauty

Kohl’s slashes workforce following store closure decision

By Alessandro Carrara | Published: 3-Feb-2025

The corporate jobs cuts at the American department store chain follow a lacklustre third-quarter 2024 performance

Kohl’s has slashed its corporate workforce by 10%, following a decision to shutter several stores across the US.

The American department store chain, which stocks Sephora products, has claimed the majority of cuts affected open positions and current associates.

Impacted staff have been provided with “competitive” severance packages and support, Fortune reported.

Kohl’s also announced it would be shuttering 27 “underperforming” stores by April in January.

"The real estate closures and the corporate workforce reduction are both actions to support our commitments to increase efficiencies and improve profitability in the business for the long-term benefit of our associates and customers," Kohl’s said in a statement.

The store closures and job cuts follow a lacklustre third quarter of trading in 2024, which saw sales slump by 8.8% to US$3.5bn.

Operating income also decreased to $98m from the $157m reported during the same quarter last year.

Lowered demand for the retailer’s core business, which includes clothing, footwear, accessories, beauty and home products, impacted sales during the quarter.

Sales of Sephora, home decor, gifting and impulse purchases helped to offset the decreases, however.

“Our third-quarter results did not meet our expectations as sales remained soft in our apparel and footwear businesses,” said Kohl’s CEO Tom Kingsbury.

“We are not satisfied with our performance in 2024 and are taking aggressive action to reverse the sales declines.

“We must execute at a higher level and ensure we are putting the customer first in everything we do.”

Cosmetics Business has contacted Kohl’s for a statement.

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