Nordstrom Reducing Workforce

Nordstrom said it is expecting to reduce approximately 350 to 400 positions as the retailer looks to cut costs and revamp growth strategies.

The move comes as the company makes changes to its operating model, Nordstrom said in a statement. The company further noted that it is looking to continually evolve with the expectations of its customers, ensure it is best positioned to respond to the current business environment and meet long-term growth plans.

The eliminated positions will primarily be in its corporate center and regional support teams, and the process should be completed by the end of the second quarter. In an effort to minimize impacts on current employees, the company will first look at options such as closing unfilled open positions. Employees whose roles are eliminated will receive separation pay and benefits. These changes are estimated to generate savings of approximately $60 million in fiscal 2016, said Nordstrom.

The changes to the operating model are part of the company's broader strategic plans to strengthen its foundation for future growth and improve productivity and service. This includes leveraging its enterprise capabilities, the company said. Initiatives include a new operating model in its technology group focused on strengthening its ability to deliver on e-commerce and digital initiatives, and proactively addressing opportunities to improve supply chain and marketing effectiveness.

"We will never change our commitment to serving customers, but recognize how they want to be served has been changing at an increasingly rapid pace," said Blake Nordstrom, co-president, Nordstrom. "Meeting our customers' expectations means we must continually evolve with them. We see opportunities to create a more efficient and agile organization that ensures we're best positioned to achieve our goals."

Nordstrom operates 326 stores in 39 states, including 121 full-line stores in the United States, Canada and Puerto Rico; 197 Nordstrom Rack stores; two Jeffrey boutiques; and one clearance store.