Job cuts at Bath & Body Works Inc. come as the retailer streamlines the work between its stores and online sales.
The Central Ohio-based business Wednesday said it eliminated 130 positions. In a Thursday morning call with stock analysts, executives reiterated their goal of operating as a global omni brand, meaning traditional divides between stores and digital will go away.
CFO Wendy Arlin said the company about thinking about the customer as one customer, which means changes like marketing as one voice and managing merchandise as one stream.
Following its split from former sister brand Victoria’s Secret, Bath & Body Works’ (NYSE: BBWI) combined teams in ways that created redundancy areas such as marketing, planning and merchandise.
The 130 cut positions were primarily in the leadership ranks. They include open positions that now will not be filled, though a specific number of those was not shared.
The company also announced the resignation of Chief Operating Officer Chris Cramer. That position will not be filled and those duties now will be assumed by Arlin, President Julie Rosen and Chief Supply Chain Officer Tom Mazurek.
Rosen now will oversee the entire customer experience including design, merchandising and marketing.
Bath & Body Works said it expects to save $30 million in the second half of the year due to the job cuts. That figure is prior to any severance, which, along with related charges, is expected to cost the company $6 million in the third quarter.
Other developments of note:
Second-quarter sales were $1.61 billion, down 5% from the same time period last year, but up 45% compared with the pre-pandemic comp of second quarter 2019.
Earnings per share were 52 cents versus 77 cents in the second quarter of 2021. Net income was $120 million compared with $215 million.
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