Saks and Neiman Marcus Layoffs

16Jan09

saks

Saks Inc. having to deal with less consumers and the world in a steep economic crisis, they had no other choice but to eliminate 1,100 corporate support jobs and in-store workers on Thursday. While on Wednesday, Neiman Marcus was eliminating 375 jobs.

neimanmarcus

The world has never seen the worse holiday shopping in decades. Especially in the luxury sector was hit hard by decreasing 27.6% in December 2008. In order to attract consumers, luxury malls would offer deep discounts and meanwhile, their profit margins were taking a beating. “Our financial performance is increasingly being challenged by some of the most difficult economic conditions our company has faced in its 84-year history,” Stephen I. Sadove, the chief executive of Saks Inc., said in a statement. (NYT) Due to this horrible crisis, they have no choice but to lower their inventory this year by 20 percent and lower their capital expenditures to about $60 million.

 

Source: WWD & NYT

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