US department store chain Kohl's has initiated a workforce reduction, trimming almost 10% of its corporate staff, as reported by Reuters.  

The report, issued on 28 January 2025, stated that the retailer is taking this measure to streamline its operations and enhance its financial performance. 

The majority of job reductions will be achieved through the non-filling of open positions. 

A statement from Kohl's was quoted by CBS 58: that the cuts were intended "to increase efficiencies and improve profitability for the long-term health and benefit of the business. 

"Knowing the impact this has on our associates, we took this decision very seriously. All impacted associates have been informed, and we provided competitive severance packages to help support their transition. We sincerely thank our associates for their dedication to Kohl's." 

The layoffs come as the retailer, alongside its peers in the department store sector, has faced challenges with inconsistent demand from consumers seeking discounts.  

The fiscal third quarter of 2024 witnessed a downturn in Kohl's net sales by 8.8% year-on-year, settling at $3.5bn. Comparable sales also saw a decline of 9.3%. Net income experienced a significant drop to $22m from $59m recorded during the same quarter of the previous year. 

In January 2025, Kohl's revealed plans to shutter 27 stores that have been underperforming. The closures are to be completed by April.  

An e-commerce fulfilment centre located in San Bernardino, California, will also cease operations. 

According to its most recent regulatory filing, Kohl's workforce numbered 96,000 in 2023: 36,000 full-time and 60,000 part-time associates. 

In November 2024, Kohl's welcomed Ashley Buchanan, a Walmart executive, into the role of CEO. This appointment followed Tom Kingsbury's departure after a tenure of less than two years leading the company.