With the fall underway, layoffs are on the rise as companies think about 2025 plans.
Just this week, CVS said it will lay off 2,900 workers, while Johnson & Johnson is cutting 231 and Disney is shedding 75 at its ABC News division. Fashion firms and retailers are no exception. They too have been shedding jobs over the past few months.
There were indications in February that thousands of fashion and retail jobs could be lost as companies in the industry retrench. Much of the expectation is due to store closings, bankruptcies and overall restructuring of operations. By July, it was clear that the U.S. labor market had softened, and in August, data from the U.S. Bureau of Labor Statistics showed that the retail trade sector lost 11,100 jobs that month, mostly due to a spike in bankruptcies.
There’s also been concern that holiday hiring would slow, given the economic backdrop. Target last month said it would hire 100,000 season workers, the same as in 2023. But Walmart declined to disclose how many it was hiring for the holiday season, stating instead that it would “offer additional hours to current associates where needed.” Walmart in 2023 also declined to disclose seasonal hiring plans. It did hire 150,000 in 2021, but dropped that number to just 40,000 in 2022. Macy’s last month said it plans to add more than 31,500 season positions for the holidays. That’s less than the 38,000 hired in 2023 and the 41,000 it recruited in 2022. In 2021, the department store retailer hired 75,000 seasonal workers. Over the years, Macy’s has closed a number of store locations, and now operates fewer stores.
And with consumers appearing to pull back on some of their discretionary spending, logistics firms are also rethinking their operations and business plans. Below are some of the fashion, retail, and logistics firms that have either shed jobs or are planning job cuts.
Patagonia: 41
The outdoor retailer is planning to reorganize its business structure at its Ventura, Calif. headquarters to focus more on product and merchandising, shedding 41 corporate jobs in the process. And in July, Patagonia told about 90 customer service employees working remotely that they had three days to decide whether to move within 60 miles of one of seven company hubs—Reno, Salt Lake City, Dallas, Austin, Chicago, Pittsburgh, and Atlanta—by the end of September or be forced to exit their jobs.
Asos: 200
The U.K.-based fast fashion e-tailer plans to cut at least 200 jobs at its headquarters. The struggling online retailer is in the midst of trying to effect a turnaround of its operations.
Pitney Bowes: more than 1,200
Global shipping-and-mailing firm Pitney Bowes sold most of its struggling global e-commerce business in August. The company layoffs at its former e-commerce logistics division impact workers who are at six sorting and shipping hubs it used before the sale. The job cuts are expected to be completed within the next two months, and impact managers, package handlers, forklift operators, and drivers.
LL Flooring: up to 2,000
The company, which once operated under its better-known banner Lumber Liquidators, filed a Chapter 11 petition in August. The case pivoted to a liquidation, which was expected to result in the loss of 2,000 jobs. Last month, the bankrupt flooring retailer sold the business to F9 Investments, which is led by Tom Sullivan, who founded Lumber Liquidators in 1994. While the transaction is still subject to a court auction seeking better offers, a sale to F9 would see LL Flooring continue as a going concern even if it would result in a smaller footprint. It wasn’t known how many stores would be kept or the number of jobs that might be saved.
Carpetright: 1,500
The flooring retailer was sold to its competitor Tapi Carpets & Floors. The deal included Carpetright’s intellectual property assets, 54 store locations and two warehouses. Only 300 jobs were saved in the deal, leaving the remaining positions superfluous.
Big Lots: at least 379
The one-stop shop home discounter once operated more than 1,300 stores across 48 states and employed over 27,700 employees. The company’s Chapter 11 filing last month initially planned for the closure of 315 doors. Big Lots last Friday and this past Monday filed updates with the Delaware bankruptcy court that now includes plans to close another 79 store locations, pushing store closing plans to nearly 400 doors. It couldn’t be immediately determined how many store associates will themselves jobless. The retailer is also closing a distribution center in the City of Columbus, impacting 379 workers at the facility. The rest of the business is expected to be sold to Nexus Capital Management, who was named the stalking-horse bidder in the bankruptcy proceeding. A court-supervised auction is slated for November.
Conn’s: 3,800
The full-chain liquidation of Conn’s resulted in the loss of 3,800 jobs across 15 states. That’s just the 244 locations operated by the home discount retailer. Other stores in operation were dealer-operated. The shut-down impacts the Conn’s banner, as well as that of nameplate W.S. Badcock, which the distressed chain acquired last December.
Walmart: more than 2,000 corporate and remote jobs
Over 2,000 corporate and remote jobs in California and Texas were slashed in August by Walmart as business changes saw the big-box discounter rethink certain roles. The mass retailer said in May that it planned to ask many of its remote employees to relocate either to the firm’s headquarters in Bentonville, Ark., or offices in the San Francisco Bay Area or in Hoboken, N.J.
UPS: 540
The shipping and logistics firm said it plans to shutter its Baltimore distribution facility, impacting 540 jobs. This past March, the parcel firm unveiled a $3 billion cost-savings plan that included heavy emphasis on automation across its logistics network. In January, UPS said its belt tightening efforts to effect $1 billion in cost savings would result in 12,000 layoffs and the closure of 200 facilities.
FedEx: over 2,300
As part of its cost-cutting efforts, the shipping and delivery firm said it plans to cut 2,000 jobs across Europe. It also ceased operations at four facilities in North Carolina and in South Carolina last month, impacting 300 positions, although some may be offered employment at nearby FedEx facilities.
Bath and Body Works Logistics Services LLC: 85
The job cuts were due to a reduction in operations at a Columbus, Ohio, distribution center, which provided shipping services for specialty chain Express. The reduction was due to the Chapter 11 filing by Express in April, which also included plans to close 100 stores. Express has since been acquired by Phoenix Retail, a joint venture between brand management firm WHP Global and mall operators Simon Property Group and Brookfield Properties.
Esprit: 65 in the U.S.
The fashion brand shed 65 jobs at its New York headquarters in Manhattan, bringing its new total head count to just 50. Esprit earlier this year shut down its entire European retail operation, restructuring operations to focus on just wholesale and e-commerce across the continent. The brand’s focus for the U.S. business for Fall 2024 is also on wholesale operations.
U.S. Logistics Solutions: over 2,000
Formerly Forward Air Solutions, U.S. Logistics Solutions filed a Chapter 7 bankruptcy petition in June to liquidate operations after its lender elected to cease funding to the company. The shut-down was expected to impact over 2,000 employees.
