Hudson's Bay cuts dozens of jobs, citing pressures on retail sector

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Hudson's Bay is cutting dozens of jobs, both at its stores and corporate office in Canada, citing pressures across the retail industry.

Canada's oldest retailer, which operates 82 department stores across the country, also cut hundreds of corporate jobs last year in a bid to streamline its operations. This latest round of cuts, announced on Tuesday, represents less than 1 per cent of the Bay's workforce in Canada, or less than 100 jobs, according to spokesperson Tiffany Bourré.

"The retail sector in Canada continues to experience pressures, and we are right-sizing our organization to ensure the long-term success of our business," Ms. Bourré wrote in a statement on Tuesday.

Retailers that sell non-essential products have noted a pullback in consumer spending, as people manage their budgets more tightly to cope with the effects of months of inflation and higher interest rates.

Last November, Canadian Tire Corp. Ltd. laid off 3 per cent of its work force, as the persistent economic pressures continued to weigh on retail sales.

But Hudson's Bay also faced delays in paying some of its bills last year. In November, parent company HBC LP completed a series of real estate transactions in the U.S. and Canada worth US$340-million. The company, which had fallen behind on payments to its suppliers at the time, said the cash would help fund its retail operations.

Last December, former Bay executive Liz Rodbell returned as president and chief executive officer. Announcing the appointment, HBC governor and executive chairman Richard Baker wrote that Ms. Rodbell's priorities would include leading "the continued transformation of Hudson's Bay."

On Tuesday, the company's statement said a realignment of its operations was needed.

"While necessary, these are difficult decisions and we are committed to fairness and respect as we support our associates impacted by these changes," Ms. Bourré wrote.