Saks Global, the owner of Saks Fifth Avenue and Neiman Marcus, has announced plans to lay off roughly 550 workers. This represents 3% of Saks Global’s total workforce.

According to reports, these consolidation efforts occur across the company’s corporate offices. This is in addition to recent downsizing in February and the closure of Saks’ Tennessee fulfillment center. 

The cuts are designed to lower costs, retain the best talent, and enable the teams to work more efficiently. 

The personnel reductions focus on commercial, finance, operations, human resources, technology, transformation teams, as well as store support teams. 

According to a report from Moody’s Ratings, North American department stores, such as Saks and Kohl’s, are vulnerable to the new U.S. trade policies. Moody’s calculates that tariffs will drive a 10% decline in adjusted EBIT for this segment.

Saks Global’s consolidation efforts are hoping to lower the impact of tariffs and reduce annual costs by about $500 million over the next few years. 

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