Saks Global on Thursday confirmed another round of workforce cuts as it wraps up its bankruptcy.
The reduction affects 16% of its corporate teams, which is overall less than 4% of its total headcount, according to sources familiar with the matter.
Stores and distribution centers are not affected. However, Saks Global is in the midst of a Chapter 11 process, begun in the new year, that does entail shuttering several locations. The company has effectively walked away from off-price, with plans to leave only about a dozen stores running in order to unload excess inventory. In the full-line fleet, more than 20 stores are slated to close, most of them Saks Fifth Avenue locations.
But the move is not entirely related to the bankruptcy, the sources said. The company is also working to reduce costs and take advantage of synergies from the late 2024 merger of Saks Fifth Avenue and Neiman Marcus Group – a $2.7 billion deal.
“Following the strategic actions we’ve taken to secure long-term financial stability, sharpen our focus on luxury and full-price selling, optimize our operational footprint and exit non-core businesses, we are right-sizing our corporate organization to align with our go-forward strategy,” a Saks Global spokesperson said by email. “With these changes, we will concentrate our resources toward critical capabilities that will drive profitable, sustainable growth.”
This is just the latest in a series, as Saks Global has been downsizing steadily since 2024. The company announced layoffs before and after the merger of the luxury department stores, involving Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman. Last year a slew of executives left the company; most recently Bergdorf Goodman chief merchant Yumi Shin took a top merchandising job at Nordstrom after Saks Global dropped claims she had violated a noncompete agreement.
Employees affected by the move will receive unspecified assistance, the spokesperson said Thursday.
“We are grateful to these colleagues for their contributions and are committed to supporting them as much as possible through this transition,” the spokesperson said.
