In a seismic shift that has sent shockwaves through Canada’s retail landscape, Hudson’s Bay Company announced plans to eliminate more than 8,000 positions across North America as part of a dramatic restructuring initiative. The iconic Canadian retailer, which has weathered nearly 354 years of economic storms, is now facing what company executives describe as “necessary but difficult” decisions to ensure long-term viability.
The layoffs, representing approximately 19 percent of the company’s workforce, will affect employees at various levels across Hudson’s Bay, Saks Fifth Avenue, and Saks OFF 5TH locations. According to internal documents obtained by CO24, the majority of cuts will impact corporate office staff and middle management positions, though store-level associates will not be spared from the reduction.
“This restructuring is about creating a more efficient organization that can compete effectively in today’s challenging retail environment,” said Richard Baker, Executive Chairman of Hudson’s Bay Company, in a statement released Tuesday. “While these decisions are never taken lightly, they are essential to position our company for future growth and sustainability.”
The announcement comes amid significant headwinds for traditional department stores. CO24 Business analysts have documented the sector’s ongoing struggle against e-commerce giants, changing consumer preferences, and lingering economic uncertainty following the pandemic. Hudson’s Bay has been particularly vulnerable, with same-store sales declining 3.7% year-over-year according to their most recent quarterly report.
Industry expert Diane Brisebois, President of the Retail Council of Canada, told CO24 that the move reflects broader trends in retail. “Department stores globally are being forced to reinvent themselves. The pandemic accelerated shifts in consumer behavior that were already underway, and we’re seeing the repercussions play out now in real-time.”
For employees, the news has been devastating. Sarah Mitchell, a 12-year veteran of Hudson’s Bay’s marketing department in Toronto, described the atmosphere as “absolutely gutted” when she received notice of her termination. “There were rumors, but nothing prepares you for actually losing your job,” Mitchell said. “Many of us have dedicated our careers to this company.”
The layoffs will be implemented in phases, with the first wave beginning in June and continuing through September. Hudson’s Bay has stated that affected employees will receive severance packages, though specific details remain confidential.
The company also announced plans to close approximately 20 underperforming locations across Canada, representing nearly a quarter of its current store footprint. The closures will be concentrated in smaller markets where foot traffic has declined significantly since the pandemic.
Labour economists have expressed concern about the broader implications for Canada’s retail sector, which employs approximately 2.1 million workers nationwide. “When a company with the historical significance and size of Hudson’s Bay makes cuts of this magnitude, it creates ripple effects throughout the economy,” noted Dr. Thomas Ferguson, professor of economics at the University of Toronto.
The restructuring plan includes significant investments in e-commerce infrastructure and technology, with Hudson’s Bay allocating $215 million to enhance its digital capabilities. The company has indicated that approximately 1,200 new positions will be created in areas such as data analytics, digital marketing, and supply chain management, though these will only partially offset the broader job losses.
As Hudson’s Bay navigates this critical transition, questions remain about the future of department stores in an increasingly digital retail landscape. Can these legacy retailers successfully reinvent themselves, or are we witnessing the gradual extinction of a once-dominant retail format? For the thousands of employees facing an uncertain future, the answer to this question carries profound personal significance.
