Hudson’s Bay Company has laid off 265 employees, primarily throughout headquarters and other corporate function retailers. Majority of the lay offs happened in Toronto, New York and other places across North America. Due to this dismissing, HBC is expected to produce 75 million dollars in cost savings annually due to the restructuring after buying Saks Inc. The workers who have been let go are receiving a severance package and will be eligible for new positions and on going hiring before the external individuals.

I agree with the decision to direct new focus in the online division, and cut cost in other departments to save money for other on going projects. As majority of the population would/can shop online rather then going into a retail store. Online shopping allows you to avoid lines, customer to employee discussions and the time consumed with traveling. Since there has been an increase in online shopping, Hudson’s Bay Company is not willing to pour money into their retail departments. They are going to upgrade their online functions instead.

Another reason that may lead to this decision is that other competition is expanding making this market difficult for HBC to compete in. As other company’s such as Walmart and Nordstrom expanding in Canada, it cannot be blamed on the economic environment. Possibly it is just that Canadian retailers simply don’t innovate enough to keep department stores open. Zellers swiftly disappeared, Sears is announcing possible shutdown by 2017, is it inevitable that HBC will follow the same path? I don’t think so, as they offer more quality products and are expanding in the correct divisions. With the purchase Saks Inc., the company only has gotten stronger.

HBC is the oldest North American company and will be around for a long time. This decision to let 250 people go is not because there down sizing but simply to transfer and focus on other departments. The employees who were dismissed received severance pay and opportunities in other departments before HBC will hire externally. HBC is expanding its digital offerings for consumers rather then implementing more department stores. Hudson Bay Company is very successful and will retain that title as long as they continue to cut costs and proceed in the appropriate direction.

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