Iconic retail name announces what is expected to be first wave of job losses
Hudson’s Bay Company (HBC) has laid off nearly 200 corporate employees as it begins the painful process of liquidating the majority of its stores.
The job cuts mark the initial wave of losses as the retailer moves forward with plans to shut down all but six of its stores across Canada.
On Friday, the company notified about half of its corporate staff that their employment would officially end on April 4, as first reported by The Globe and Mail.
"This is a difficult reality of the restructuring process, and we are committed to treating associates impacted by these changes with respect and support," Tiffany Bourré, spokesperson for HBC, told the Globe.
While corporate layoffs are underway, store employees are being retained to manage clearance events. Both physical stores and the company’s e-commerce platform remain operational. As of late March, liquidation sales had commenced in 73 of the Bay’s 80 locations, along with two Saks Fifth Avenue and 13 Saks OFF 5TH stores in Canada, which HBC operates under license from Saks Global.
According to court filings, Hudson’s Bay employed approximately 9,364 workers across Canada as of February 28, with 520 of those classified as corporate staff. Only six Hudson’s Bay stores are expected to remain open following the restructuring.
This latest development in the closely-watched shutdown of Canada’s oldest retailer quickly follows reports from yesterday, that HBC plans to pay up to $3 million in bonuses to senior managers during the liquidation process.
According to court documents cited by The Canadian Press, these bonuses are intended to retain key personnel during restructuring, with payments tied to milestones such as the completion of store closures and asset sales.
Meanwhile, frontline retail employees are not being offered severance pay as part of the wind-down proceedings – a point not going unnoticed by unions, with Canadian Labour Congress president Bea Bruske calling the move “incredibly egregious,” CP reports.
