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Lowe On Massive Store Closure And Job Cut Drive To Reduce Costs

Lowe’s Companies Inc, which has around 1,725 stores in the United States, has many workers working full time and part-time. But now, it is laying off many of its full-time employees to reduce costs.

There are 190,000 full-time employees and 110,000 employees working part-time at Lowe’s. Full-time workers are now being replaced by contractual workers. The stores operate in the United States, Mexico, and Canada.

Lowe is a home improvement retailer store that operates mostly in the U.S. It is going on a massive strategic reassessment to make its business stronger. The retailer is making changes to compete with its rival Home Depot which has greater strength in e-commerce sales.

Marvin Ellison, the CEO from July 2018 has been on a massive spree of job cuts and store closures across the country. He has been striving to cut down costs through these measures. He is also cutting down on inventory. He has exited the company’s Mexico business too.

The CEO says that through the mass firing of workers, the workers will have more time serving on the sales floor.

Workers who are laid off will be provided with transition pay. They can apply for jobs in other stores,   says the company. Most of the workers fired are assemblers and janitors who help to put things together like patio furniture and grills and help in maintenance work too. The company hopes to make their transition as smooth as possible.

In 2013, the company bought the Orchard Supply Hardware store chain which it later sold in 2018.  99 such stores were closed as they were underperforming. Around 51 more stores of Lowe’s were closed down in the U.S. and Canada which were not showing proper growth.

Retail store closures are on the increase in the U.S. recently. Data from Coresight research states that 7,000 retail stores have been closed in the U.S. in recent times.

Marco Cox
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EDITOR-IN-CHIEF At Market News Network

Marco Cox has extensive experience in writing and editing publications related to trade and commerce. He conducts effective business reviews and also knows the latest business strategies. He has extensive experience in researching effective business magazines and also known as a counselor on the floor, when it comes to finance, trade, M&A. He is a true spectator of the theater, an inveterate reader with a strong logical curiosity and prefers to adopt new abilities.

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