'COVID pressures' mean 15% corporate workforce reduction at Kohl's
MENOMONEE FALLS, Wis. - Jen Johnson, Kohl's SVP of communications announced Tuesday, Sept. 15 a 15% reduction in the company's corporate workforce "as a result of the ongoing pressures of the COVID-19 pandemic on the business."
Johnson issued this statement to FOX6 News:
"Over the past several months, Kohl's has taken several decisive actions to navigate through the COVID-19 crisis. Our decisions have prioritized the health and safety of our customers and associates, and preserving the financial position of the company. Today, as a result of the ongoing pressures of the COVID-19 pandemic on the business, the company took the difficult but necessary step to reduce our corporate workforce by approximately 15%.
"We put a great deal of thought into this decision and have offered a competitive severance package and outplacement services to help all affected associates as they transition to their next step. We sincerely thank these associates for their contributions and years of service at Kohl’s.
"Kohl’s continues to maintain a strong balance sheet and cash position to help navigate through the crisis, and will continue to exercise financial discipline through diligent expense and inventory management. Through prudent management, disciplined investment in key areas, and smart long-term strategic planning, we are well positioned to capitalize on evolving customer behaviors and the retail industry disruption. The organizational changes we’ve made and keen focus on our strategic business priorities will continue to support our long-term success.
"Over the past several months, Kohl's has taken several decisive actions to navigate through the COVID-19 crisis. Our decisions have prioritized the health and safety of our customers and associates, and preserving the financial position of the company. Today, as a result of the ongoing pressures of the COVID-19 pandemic on the business, the company took the difficult but necessary step to reduce our corporate workforce by approximately 15%.We put a great deal of thought into this decision and have offered a competitive severance package and outplacement services to help all affected associates as they transition to their next step. We sincerely thank these associates for their contributions and years of service at Kohl’s.Kohl’s continues to maintain a strong balance sheet and cash position to help navigate through the crisis, and will continue to exercise financial discipline through diligent expense and inventory management. Through prudent management, disciplined investment in key areas, and smart long-term strategic planning, we are well positioned to capitalize on evolving customer behaviors and the retail industry disruption. The organizational changes we’ve made and keen focus on our strategic business priorities will continue to support our long-term success."
Kohl's stores were closed nationwide effective March 19 "as a result of the escalating COVID-19 pandemic." The nationwide closure was extended "until further notice" on March 30.
Stores in more than a dozen states were reopened at the beginning of May as part of a phased approach.
In mid-May, Kohl's announced a first quarter net sales decrease of 43.5%, and a 40.6% drop in total revenue -- down more than $1.5 billion from 2019. The company also reported a $541 million net loss of income for the quarter and an adjusted net loss income of $495 million.