Thousands of jobs are on the chopping block at Nordstrom after the retail giant announced that it’s shuttering its business operations in Canada.
In its fourth-quarter earnings release on March 2, the company said it intends to close its six Nordstrom stores and seven Nordstrom Rack stores with the help of a third-party liquidator.
“We entered Canada in 2014 with a plan to build and sustain a long-term business there,” CEO Erik Nordstrom said in the release.
“Despite our best efforts, we do not see a realistic path to profitability for the Canadian business.”
Nordstrom added that it has obtained an initial order from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA) to facilitate the wind-down.
The retail giant expects to close all of its stores by late June. The company’s e-commerce platform is ceasing operations as of March 2.
Nordstrom claims in the release that it employs a Canadian workforce of approximately 2,500 people.
Nordstrom’s decision to discontinue its business operations in Canada comes amid a flurry of layoffs to kick off 2023.
Several big names, including Alphabet, Hudson’s Bay, Microsoft, Amazon, and Salesforce, are significantly scaling back their staffing levels as they continue to monitor market conditions.
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