Saks Global culls large chunk of its corporate workforce

Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus, is slashing 16 percent of its corporate workforce as it looks to emerge from bankruptcy protection this year, according to reports.

About 640 jobs, under four percent of the company’s total workforce, are being cut. The positions impacted do not include retail or distribution staff, a source told The Wall Street Journal.

Since filing for bankruptcy protection in January, Saks has closed a number of its department stores as the company focuses on its most profitable businesses. At the time Saks filed for bankruptcy protection, it employed about 17,000 people.

Some of the cuts were made as a result of Saks exiting businesses and streamlining operations, while others were made as part of ongoing changes the company has been making since its 2024 acquisition of Neiman Marcus, according to the report.

“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,” Saks Global Chief Executive Geoffroy van Raemdonck said in a statement.

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The Independent has contacted Saks for comment.

The company plans to leave about a dozen stores up and running to unload excess inventory. However, among its fleet, about 20 stores are slated to close, most of which are Saks Fifth Avenue locations, Retail Dive reported.

The layoffs were not entirely because of the bankruptcy filings, sources told Retail Dive, noting that Saks is working to reduce costs and take advantage of the 2024 merger of Saks Fifth Avenue and Neiman Marcus Group.

“Following the strategic actions we’ve taken to secure long-term financial stability, sharpen our focus on luxury and full-price selling, optimize our operational footprint and exit non-core businesses, we are right-sizing our corporate organization to align with our go-forward strategy,” a Saks Global spokesperson told the outlet. “With these changes, we will concentrate our resources toward critical capabilities that will drive profitable, sustainable growth.”

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Layoffs had already been impacting Saks Global, as the company has been slowly downsizing since 2024. The company announced layoffs ahead of the merger that involved Saks Fifth Avenue, Nieman Marcus and Bergdorf Goodman.

Employees affected by this round of layoffs will receive unspecified assistance, the spokesperson told Retail Dive.

“We are grateful to these colleagues for their contributions and are committed to supporting them as much as possible through this transition,” the spokesperson said.

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