BUSINESS

Hudson's Bay Laying Off 265 People In Toronto, New York

09/29/2015 03:27 EDT | Updated 09/29/2016 05:12 EDT
Carlos Osorio via Getty Images
HBC Group- Toronto, ON, 01/26/2006 Hudsons Bay Company. (Photo by Carlos Osorio/Toronto Star via Getty Images)

TORONTO — Hudson's Bay said on Tuesday it is laying off 265 corporate office employees in an effort to reduce expenses.

The retailer's spokeswoman Tiffany Bourre said the cuts will affect a variety of jobs but will mainly be at its Toronto and New York corporate offices.

Bourre said the majority of the layoffs are centred on the company's U.S offices where it acquired American luxury retailer Saks International in 2013.

The affected cities include New York, as well as St. Louis, Jackson, Miss., and Aberdeen, Wash., and some others, she said.

Hudson's Bay (TSX:HBC), which was founded in 1670, employs close to 45,000 people across its operations.

The retailer said the layoffs are linked to cost savings it has discovered over the past two years after it integrated Saks's operations into its own.

The company also said it's moving to a single technology platform for all of its stores and will refocus investment on the retail experience both in-store and online.

"By enabling our teams to work smarter, faster and more effectively, we expect to achieve substantial cost savings and continue to invest in our core strategies to build our business," CEO Jerry Storch said in a news release.

The company will take a $20-million charge in the third quarter related to the restructuring and said the layoffs and other actions should save it around $75 million in 2016.

Hudson's Bay said it has hired 2,000 new employees since the takeover of Saks and plans to add more as it opens seven new locations under the Saks brands next year.

The company's brands include Hudson's Bay, Lord & Taylor, Saks Fifth Avenue, Saks off Fifth, and Home Outfitters.

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