Hudson's Bay cutting 265 jobs, streamlining in North America
TORONTO (Reuters) - Hudson's Bay Co HBC.TO plans to eliminate 265 corporate jobs, mostly in the United States, and cut costs to save C$75 million ($55.86 million) as it streamlines its North American operations, the department store operator said on Tuesday.
Shares rose after the announcement and finished 6.6 percent higher at C$20.73.
The retailer, founded in 1670 and North America's longest continually operated company, is expecting a C$20 million charge in the third quarter as it consolidates to cut duplication across department store operations.
Hudson's Bay, which also owns the Lord & Taylor banner in the United States, bought the Saks luxury chain in 2013 for $2.4 billion. This past summer, it announced a 2.8 billion euro ($3.14 billion) deal to buy Germany's Kaufhof chain.
The job cuts will affect just over 0.5 percent of the company's nearly 45,000 employees, primarily U.S. positions, a spokeswoman said, adding that Hudson's Bay was ahead of schedule in its integration plans.
Earlier this month, the company told investors it was on track to meet its C$100 million cost savings target as part of its Saks acquisition and had indicated there could be more savings to come.
The retailer has also been investing heavily in its back-end technology so its various department store banners and online operations all function off a common platform, a move executives say will help drive long-term growth and savings.
The company said it was also on schedule to open several Saks Fifth Avenue locations and OFF 5th locations, beginning next year, as part of is expansion plans in Canada.