Nordstrom cut approximately 120 jobs on its technology team this week, the company said this morning, disclosing a specific number for the first time and confirming news first reported by GeekWire yesterday.
Over the past seven months, Nordstrom has been restructuring its technology team, a company spokeswoman said this morning. The restructuring has impacted all levels of the technology team at different times, she said.
“We have had people impacted at the vice president, the director and the senior director levels, and other levels,” spokeswoman Tara Darrow said. “This has been a process over time over the last seven months or so, and there have been impacts over various times.”
The latest cuts are in addition to 10 layoffs from the technology team that were confirmed earlier this month.
This week’s cuts did not include any upper management positions, Darrow said. However, unrelated to the layoffs, some executives have left the tech team recently, sources tell GeekWire. They include Bill Tucker, VP of technology; John Mayfield, VP of enterprise architecture and system development & support; and Sam Hogenson, executive VP of selling technology, who retired.
Nordstrom declined to confirm any specific departures, but Darrow said that the retailer does not anticipate any more cuts going forward.
The company is facing some criticism for reportedly informing affected employees in a way that caused undue stress. Darrow said that she has not heard that specific feedback. “What I will say is that these situations are always very difficult,” she said.
According to Nordstrom, the restructuring of the technology team is part of a larger shift in its business plans regarding technology.
“Restructuring the technology team was just one part of a larger effort that we had undertaken to ensure that the organization’s operating model is best prepared to support our company’s future growth goals and provide us with a competitive advantage moving forward,” Darrow said.
On an earnings call with analysts earlier this year, Nordstrom announced some changes in its approach to technology. Those changes include “focusing on fewer, more meaningful projects, and accelerating our efforts to re-platform our architecture to streamline development, while reducing costs,” Darrow said.
“We believe these organizational changes position Nordstrom Technology well to deliver for the future,” Darrow said.
The restructuring of the technology team follows Nordstrom’s disappointing $300 million investment in tech and e-commerce of last year that resulted in falling net income. In February, the company reported $180 million in quarterly net income, or nearly 30 percent below the same period a year ago. Nordstrom stock is down about 30 percent in the past year and down about 1.4 percent from yesterday, now trading at about $56 per share.