Lowe’s has decided to lay off 525 employees at its Mooresville, NC headquarters and some other facilities as a part of its key operational restructuring.
According to Lowe’s, it is cutting off around 430 positions at corporate office. Around 70 support positions will be laid off in Wilkesboro and around 25 corporate support positions will be eliminated from its other facilities.
These layoffs are concentrated on forming a more efficient, customer-oriented, and agile operating structure for corporate-focused positions.
Lowe’s has made this announcement 6 days after it said it had plans to add 1,700 customer-support positions, including 500 each in Indianapolis and Albuquerque, N.M., and 600 jobs in Wilkesboro – all before October.
Earlier in January, the company said it was eradicating 2,400 jobs as a part of modifying its store-staffing model in addition to getting rid of positions in distribution and contact centers. Those lay-offs indicated less than 1% of its overall workforce of over 285,000.
The retailer had cut off 95 jobs in its IT (Information Technology) department in October.
Lowe’s said – “This structure will result in Lowe’s having a leaner organization with fewer managerial layers, so that we can make decisions more quickly, operate efficiently and foster a culture that innovates as fast as customers expect.”
The modifications are in keeping with an announcement made recently that they would cut off support positions and focus on positions that assist customers in stores.
In a statement by the company, a spokesperson said – “Lowe’s is engaged in a comprehensive effort to refocus and prioritize resources to ensure we have the right organizational structure in place to support our omnichannel strategy and customers’ expectations.”
An economics professor from N.C. State University, Michael Walden said that such re-allocation of job positions seemed to be a logical answer to the evident trends as with all forms of shopping change from in-person to internet.
The new staffing model is likely to lead to just one or two assistant managers at each store. Furthermore, some management roles in the Distribution and Customer Support Centers were to be combined, affecting 37 staffs throughout the country and around 10-percent of vice presidents at Lowe’s corporate office.
According to marketing professionals, Lowe’s is making efforts to better vie with competitor Home Depot.
The manager of Lowe’s corporate public relations, Karen Cobb said that the firm would be offering the affected staff with a transition package, including outplacement resources, severance pay, and other support. Further, he said that the affected staff could apply for any open roles across the firm.