Weeks after the appointment of a new chief technology and information officer, Nordstrom confirmed that it underwent layoffs in its tech division.
“As we continue to invest in technology as a critical area of our business, we have made the difficult decision to reduce our technology workforce, adjusting the team structure and eliminating certain roles to remain agile and operate more efficiently,” a company spokesperson said in a statement.
Nordstrom declined to respond to questions on how many people were impacted. A number of people in program and product management, engineering, and data science and analytics roles have posted comments on LinkedIn as being laid off from their positions due to Nordstrom’s restructuring.
“We are committed to treating impacted team members with respect and supporting them through this transition,” the spokesperson said.
Last month, Nordstrom named Jason Morris as its chief technology and information officer, wherein he will manage the company’s technology functions including engineering, data science and analytics. Prior to Nordstrom, Morris served as Walmart’s senior vice president of enterprise business services.
The retailer’s previous tech chief, Edmond Mesrobian, left the company last fall. Mesrobian oversaw a restructuring of Nordstrom’s tech team in 2019, which also resulted in an undisclosed number of layoffs.
Forty-percent of Nordstrom’s offering is digital, according to Michael Maher, Nordstrom’s chief accounting officer. “We continue to see it as a meaningful part of our overall business,” Maher said on a call with analysts in March.
The department store recently reported that Q4 net sales fell 4.1% year over year to $4.2 billion, with Nordstrom down 2.4% and Rack down 8.1%. Digital sales fell 13.1%.
The company also decided to wind down its business in Canada. Six full-line Nordstrom stores, seven Rack stores and its Canadian website are shuttering, impacting about 2,500 employees. Last fall, the company also laid off over 200 workers at a distribution center in Iowa.
