Lowe's Announces New Layoffs Of Store Assistant Managers
By Christine Kern, contributing writer
Some 2,400 employees will lose their jobs as the store reorganizes to be more customer-centric.
Home improvement retailer Lowe’s Companies, Inc. has announced that it will lay off approximately 2,400 full-time workers this spring in order to reorganize its workforce to be more customer-centric in stores. The chain is modifying its store staffing model, and the layoffs compromise “less than one percent” of its employees, according to CNBC.
In a store letter to employees, Lowe’s stated: “Today we are introducing a new store staffing model designed to reallocate our people resources to strengthen our focus on delivering a truly exceptional – and differentiated – experience for customers. The new store staffing model is being rolled out now across all U.S. Lowe’s home improvement stores so that we are best prepared for the upcoming spring selling season. The changes will better align store staffing with customer demand, shift resources from back-of-the-store activities to customer-facing ones, and enhance our efficiency and productivity.”
The letter also stressed that they were “shifting most roles and responsibilities versus eliminating them,” providing many of the affected associates with other opportunities in the company.
According to a company statement, the majority of cuts will be at the store level, but also includes some layoffs at distribution centers, support centers, and among vice presidents at the company’s Mooresville, North Carolina corporate office. A company spokeswoman told WSOCTV that the new store staffing model means the loss of one or two assistant store manager positions per store.
The move comes just ahead of the home improvement chain’s busy spring season, when it usually adds staffing positions, as it shifts resources from back-of-store activities to more customer-facing ones. And while these managerial positions are being eliminated, Lowe’s officials report that the chain anticipates opening between 15 and 20 new stores per years as part of its growth plan, adding some 4,000 store-level jobs.
This round of layoffs also follows the elimination of 95 positions in its IT department last October. According to CNBC, while same-store sales at Lowe's have been positive for 14 straight quarters the company's growth has lagged that of competitor Home Depot for six of the past eight quarters, according to FactSet data.