Nordstrom lays off around 200 employees from the technology division last week. The company cited the need to operate more efficiently as the reason behind the move. It did not disclose how many workers were left with its tech team, but a search of posts on LinkedIn revealed that software engineers, data analysts, technical program managers, DevOps engineers, and other roles were affected.
Nordstrom’s spokesperson explained that the company made the difficult decision to reduce its technology workforce as it continued to invest in technology as a critical area of its business. The restructuring and elimination of certain roles were necessary to remain agile and operate more efficiently.
Nordstrom’s digital sales comprised 38% of total sales in its fiscal year 2022. However, digital sales decreased by 13.1% in the fourth quarter compared to the same period in 2021 due to the elimination of store fulfillment for Nordstrom Rack digital orders and the sunsetting of Trunk Club.
The retail giant recently hired Jason Morris as its new chief technology and information officer, effective May 1. Morris comes from Walmart, where he spent more than 16 years and was most recently a vice president of retail technology. He replaced Edmond Mesrobian, who stepped down in October.
Nordstrom’s move to lay off employees follows its previous announcement that it was winding down operations in Canada, resulting in the loss of 2,500 jobs. Other retailers, including REI, The Gap, Best Buy, Walmart, and JCrew, are also making cuts to their corporate workforces.
The trend of reducing corporate workforces matches moves being made across the tech industry due to continued economic uncertainty and cost cutting. Companies such as Amazon, Microsoft, Meta, F5, Google, Redfin, and numerous smaller startups have also announced layoffs.