Saks Global plans 640 job cuts as it reduces 16% of corporate workforce

Saks Global is cutting around 640 corporate jobs, equivalent to roughly 16 per cent of its corporate workforce, as it continues efforts to restructure its business and emerge from bankruptcy protection later this year.

The layoffs, first reported by Women’s Wear Daily and confirmed by a person familiar with the matter, reflect a broader reset of the company’s operating model.

Workforce changes tied to restructuring plans

The job cuts represent less than 4 per cent of Saks Global’s total workforce. As of January, when the company filed for bankruptcy protection, it employed about 17,000 people.

The layoffs are part of a wider restructuring process aimed at reducing costs and simplifying operations as the company works through court-supervised proceedings.

Key details of the workforce reduction include:

• Around 640 corporate roles being eliminated
• Approximately 16 per cent of corporate staff affected
• Less than 4 per cent impact on total workforce
• No cuts to retail store or distribution centre roles

The focus on corporate functions highlights a shift towards a leaner central structure.

Operational changes and acquisition impact

The workforce reductions are linked to a combination of strategic decisions.

Some of the cuts stem from efforts to exit certain business lines and streamline operations. Others are tied to ongoing integration work following the company’s 2024 acquisition of Neiman Marcus.

Chief executive Geoffroy van Raemdonck said in a company statement that the changes are designed to support the company’s future structure.

“The strategic changes we are making to our corporate structure support the go-forward needs of the business, which will have a smaller operational footprint,” he said.

The restructuring reflects both consolidation and repositioning following the acquisition.

Store closures and footprint reduction

Since filing for bankruptcy protection, Saks Global has significantly reduced its physical retail presence.

The company has:

• Closed all but about 12 of its Saks Off Fifth discount stores
• Reduced the number of Saks Fifth Avenue stores by nearly half
• Shut several Neiman Marcus locations

These actions form part of a broader effort to align costs with demand and reshape the company’s retail footprint.

Signs of operational stabilisation

Despite the ongoing restructuring, the company has indicated that parts of the business are stabilising.

Saks Global said its sales and inventory performance are exceeding internal expectations. It also noted that capital commitments secured from investors are expected to provide sufficient liquidity to support operations through the restructuring process.

The company has also been working to rebuild relationships with suppliers to ensure continuity in product availability, a key concern following its financial difficulties.

Saks Global is aiming to complete its restructuring and emerge from bankruptcy protection later this year.

The current round of job cuts underscores the scale of change required to reach that point. While the company has made progress in stabilising operations, its future will depend on how effectively it can balance cost control, supplier confidence and customer demand.

The restructuring is not only about reducing costs, but about redefining the company’s operating model for a more constrained and competitive retail environment.