Hudson’s Bay Co. Cuts 1000 Jobs

Hudson's Bay Co. (Toronto) will cut 1000 jobs, or 5 percent of its work force. But the parent company of Canada’s largest department store – plus the Zellers, Home Outfitters and Fields chains – said the cuts might not be enough for the company to remain competitive.

“These changes allow us to be more responsive to customer needs and expectations while at the same time aggressively implement our business strategy in order to grow sales and earnings” said Jeffrey Sherman, ceo of Hudson's Bay Trading Co., the North American parent company. “But as the economy changes, we will then be forced to react to what the economy does.” I think it's getting a lot worse in the U.S. and at a less rapid pace in Canada. From a business forecasting point of view, we're expecting the business to remain very challenging.”

According to the Toronto Star, the cuts will be mainly head office jobs in accounting, information technology, supply chain and logistics. Some store jobs will also be eliminated, but none that affects customer service, the company said.

The Canadian job losses at Hudson's Bay follow similar cuts at Lord & Taylor, its sister chain in the United States. The upscale department store has cut 290 jobs in recent months, an “equivalent” percentage of jobs, Sherman said, as part of the same restructuring. “We believe this new structure will allow us to better compete during these challenging economic times and ensure our long-term success,” he said.

The company, which is privately held and doesn't publish financial results, has also cut travel, marketing and other expenses, Sherman said.