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Neiman Marcus lays off 500, makes tech leadership changes
Bergdorf Goodman President Darcy Penick will lead the company's product and technology organizations.
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.
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This Week in Commerce: Nike earnings, Fed rate decision
Check out the agenda for March 20-24.
Welcome to a new week. Earnings offer a bellwether for the consumer economy this week, as key brands like Nike and General Mills will report results. Elsewhere, all eyes will be on the Federal Reserve as it announces its latest decision on interest rates.
Fed interest rate decision: The Federal Reserve Open Markets Committee announces its decision on whether and by how much to hike benchmark interest rates following its two-day meeting. The Fed has been hiking interest rates rapidly in an effort to bring down 40-year-high inflation, but slowed the pace at the February meeting with a 0.25% increase. (March 22, 2 p.m.)
Durable goods orders: The U.S. Commerce Department releases data on orders from manufacturers for goods that are designed to last more than three years. This is considered an indicator of business activity. In January, orders dropped at the steepest rate since April 2020. (March 24, 8:30 a.m.)
Monday, March 20: Boxed, Foot Locker
Tuesday, March 21: Nike, GameStop
Wednesday, March 22: Petco, Chewy
Thursday, March 23: General Mills, Express