Yesterday, according to WWD, Saks Global, the luxury retail powerhouse formed by the merger of Saks Fifth Avenue and Neiman Marcus, is cutting approximately 550 jobs this week—about 3% of its workforce—as it continues efforts to consolidate operations following its $2.7 billion acquisition of Neiman Marcus in December. The move is aimed at streamlining functions and eliminating overlapping roles created by the merger.
The majority of the layoffs—around 300—are from Saks Global’s corporate offices in Brookfield Place (New York), Dallas, and other locations. These cuts are in addition to a 5% corporate workforce reduction announced in February and follow the recent closure of a Tennessee fulfillment center, which resulted in another 500 job losses.
The affected roles span across commercial, finance, operations, HR, technology, transformation, and in-store teams for Saks Fifth Avenue and Neiman Marcus. Bergdorf Goodman and Saks Off 5th divisions were reportedly unaffected.
It is reported that Saks Fifth Avenue, under Saks Global, is a world-renowned luxury department store, housing most well-known international beauty brands such as Estée Lauder, La Mer, Chanel, and Clé de Peau Beauté (CPB).
Saks Global, under the leadership of executive chairman Richard Baker and newly appointed CEO Marc Metrick, is seeking to trim $500 million in annual costs over the coming years. The company has also begun restructuring vendor relations, extending payment terms to 90 days and planning to settle overdue invoices in monthly installments starting in July. Its vendor base is being cut by 25% as the retailer streamlines supply chains and navigates supplier exits.
