Saks Global cuts HQ headcount by 16 percent

Saks Global is cutting its corporate headcount by 16 percent amid the continued rollout of a restructuring plan designed to optimise the luxury retailer’s footprint.

Company officials confirmed the news to WWD, which reported that around 640 workers will be impacted, reflecting 4 percent of Saks Global’s total workforce. The layoffs will not involve staff at stores, distribution centres and other facilities.

The company did state that some members of its senior level management are among those affected, however, there would be no changes to the global management team.

“As we position Saks Global for future growth as the premier luxury multibrand retailer, we are focusing our resources to ensure we are a profitable business at the service of our customers, brand partners and other stakeholders,” CEO Goeffroy van Raemdonck said in a statement.

He added that the decision to enact layoffs had been difficult, yet changes were imperative in supporting the “go-forward needs of the business, which will have a smaller operational footprint”.

The move is associated with Saks Global’s Chapter 11 process, which launched on January 13 with a 1.75 billion dollar debtor-in-possession financing commitment.

Since then, van Raemdonck said the team has “successfully executed on a number of strategic actions to prime Saks Global for long-term success” and that “sales and inventory results continue to outperform our internal plans”.

In addition to this, the company has secured committed capital to ensure there is sufficient liquidity to operate through the completion of the restructuring process, which is expected to finalise this summer.