Luxury department store retailer Neiman Marcus Group announced plans on Thursday to lay off 500 people, or about 5% of its workforce.
"It is always our intent to minimize the impact to existing associate jobs, and we take these types of decisions very seriously. We will support those associates who will be leaving the company with severance and other benefits," said NMG CEO Geoffroy van Raemdonck.
It comes as the company is also creating a new leadership structure. As a result, it also identified open roles to best support the new operating model going forward.
The move will bring transition in technology leadership:
Darcy Penick, the president of Bergdorf Goodman, will assume leadership of the NMG product and technology organization.
"Bergdorf Goodman is a key driver for the company's growth through BG.com," van Raemdonck said. "Darcy's strategic leadership of NMG's product and technology roadmap will ensure the right suite of tools, platforms and resources are aligned to our most important investments in the customer experience and key capabilities across Neiman Marcus and Bergdorf Goodman."
This comes less than a year after Bergdorf Goodman announced it would replatform its ecommerce capabilities following a $200 million investment into Neiman Marcus Group from Farfetch.
With this move, chief product and technology officer Bob Kupbens will leave Neiman Marcus.
Additionally, Neiman Marcus President Ryan Ross will now lead the parent company’s customer insights group.
The moves come about a month after the company hired a chief brand officer and chief retail officer.
Neiman Marcus isn't alone among fashion and luxury retailers making layoffs as the industry grapples with a pullback in consumer spending on discretionary purchases amid inflation. Saks, Everlane, Stitch Fix and The RealReal recently announced job cuts, as well.
