Neiman Marcus Cuts More Jobs

Published on April 08, 2009 | Comments: 0
Luxury retailer Neiman Marcus has eliminated between 131 and 135 jobs. These layoffs, representing approximately 1-2% of the Neiman-Marcus workforce, follow 375 corporate and store positions cut by the retailer in January. According to the Charlotte Business Journal, Neiman Marcus is eliminating 31 positions as part of a marketing, advertising, production, creative services reorganization mostly affecting employees at Neiman-Marcus’ Dallas, TX headquarters. The other 100 or so eliminated positions are at stores and locations across the country. Neiman-Marcus has experienced a number of recent setbacks. In addition to laying off 375 employees in January, the retailer issued new debt to pay interest on senior notes due in 2015. During Q1 2009 (ended November 1, 2008), Neiman Marcus saw comparable revenues drop 14.5% and profits drop 84%. When Neiman Marcus announced Q1 2009 results in December 2008, the retailer said it wouldn’t close stores but planned to put a hold on remodel plans, not fill open positions, and cut travel and supplies expenses. More recently, Neiman Marcus released disappointing results for Q2 2009 (ended January 31, 2009) that most significantly included a net loss of $509.2 million. Rival luxury retailer Nordstrom has also been experiencing financial difficulties. Nordstrom reported significant decreases in net earnings and total sales for the fourth quarter and full year of fiscal 2008. Despite these results, Nordstrom still plans to open 13 new stores and relocate one store in fiscal 2009.

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