Canadian department store Hudson’s Bay is downsizing as part of an organizational “re-alignment” driven by the challenged retail environment in the country, a spokesperson confirmed by email. The layoffs impact “less than 1% of our workforce,” the spokesperson said.
“The retail sector in Canada continues to experience pressures, and we are right-sizing our organization to ensure the long-term success of our business,” the spokesperson also said. “While necessary, these are difficult decisions and we are committed to fairness and respect as we support our associates impacted by these changes.”
The reorganization affects the retailer as a whole, which as of 2022 is once again operating both e-commerce and physical stores as one entity, the spokesperson said.
That is a turnabout from 2021 when parent company HBC announced that Hudson’s Bay would “separate its store fleet and e-commerce business into two separate businesses, accelerating its digital-first transformation.”
For that year or so, the online business had operated as “The Bay,” responsible not just for digital retail sales, including via a third-party marketplace, but also brand direction, marketing, buying, planning and technology for itself and the physical-store operations. The company didn’t respond to email and phone requests for more details about why Hudson’s Bay has re-merged its operations.
On Wednesday, HBC’s spokesperson confirmed that Saks Fifth Avenue and off-price Saks Off 5th, whose separations were enabled by hundreds of millions in private equity investments, each still run different companies for their e-commerce and their stores.
The separation moves were widely seen as potentially making these legacy retail names more attractive to investors and tech talent, though some analysts have questioned the rationale of dividing up operations. Some observers also noted that the breakups could make it easier for the banners to unload some of their real estate. For a time, activist investors pushed Macy’s and Kohl’s to also consider the maneuver; Macy’s explored it but ultimately rejected it.
In January 2023, all three HBC e-retailers — The Bay, Saks.com and Saksoff5th.com — confirmed rounds of layoffs, joining several other tech-oriented companies in downsizing around that time.
Correction: This story has been updated to reflect that the Canadian department store's name is "Hudson's Bay."
