WHAT’S BEING CLAIMED:
- Lowe’s is laying off thousands of store workers across the United States to reduce costs.
- The company is laying off thousands of maintenance and assembly worker jobs and outsourcing them to third-party companies, Lowe’s said in a statement.
- “Associates who were in these positions will be given transition pay and have the opportunity to apply for open roles at Lowe’s,” a spokesperson for the company told Business Insider.
Home improvement retailer Lowe’s is laying off thousands of store workers across the country to reduce costs.
“We are moving to third-party assemblers and facility services to allow Lowe’s store associates to spend more time on the sales floor serving customers,” a Lowe’s representative told Business Insider in a statement.
“Associates who were in these positions will be given transition pay and have the opportunity to apply for open roles at Lowe’s,” the statement said.
According to the Wall Street Journal, the affected positions include in-store assemblers and maintenance staff. It’s not yet clear exactly how many employees were laid off, but the number is likely to reach thousands given the company has 1,725 stores across the country.
The company is not disclosing how many workers are affected, “as they vary by store and all associates have the opportunity to apply for open roles within Lowe’s,” a Lowe’s spokesperson told Business Insider.
This isn’t the first instance where a company pivots to third-party vendors. Unfortunately, this move results in job losses. Lowe’s has laid off 207 North Carolina employees at the retailer’s storage facility in Charlotte.
Lowe’s workforce is made up of 190,000 full-time and 110,000 part-time employees, according to the company’s most recent annual filings with the US Securities and Exchange Commission on Feb. 1.
According to a CNBC report, since Lowe’s CEO Marvin Ellison took over in July 2018, the company has been closing stores to reduce costs.
Store closures have now been part of a bigger trend in retail. More than 7,000 store closures have been announced by U.S. retailers so far this year, according to a Coresight Research tracking. The list could top 12,000 by the end the year, setting a record, Coresight says. In 2018, Coresight tracked 5,524 store closures, down more than 30% from an all-time high of 8,139 closures announced in the previous year.