Lowe’s justifies its recent layoffs

Lowe’s recent job trimming is expected to generate cost savings and keep up with changing customer behavior, the company says. It’s also generated press coverage citing anxiety among workers on the floor.

An article from the Charlotte Observer quoted one unnamed employee: “We’re stressed to the max.”

But at Lowe’s headquarters, the “staffing model changes” are designed to improve the customer experience and speed up decision making across the company, as it grows and evolves.

The Mooresville, North Carolina-based home center chain says its recent moves will result in the loss of one to two assistant store manager positions per store. Also being cut as the company adjusts to changing consumer behaviors will be 10% of vice presidents in Mooresville and additional leadership positions in distribution centers. All in, the reduction affects 2,400 employees, or less than 1% of the work force.

In a memo to Lowe’s employees [click image on the right for full memo], CEO Robert Niblock explained the changes as a step to keep up with the times.

“The changes will better align store staffing with customer demand, shift resources from back-of-the-store activities to customer-facing ones and enhance our efficiency and productivity,” he wrote.

In an email to HBSDealer, Karen Cobb, manager of corporate public relations, wrote: “While staffing decisions are not easy, we are continuing to invest in the future of our business. Over the next three years, we expect to spend $3.6 billion in capital, including plans for 15 to 20 new stores per year, and create approximately 4,000 store-level jobs.”