Lowe's Companies Inc. has implemented a reduction in its corporate staff that affects about 600 positions, the company confirmed on Friday. The cuts were described as a reorganization of corporate and support roles and pertain to the retailer's back-office operations rather than store-level employees.
The company said in a statement:
"We have made the difficult decision to reduce approximately 600 corporate and support roles."
The retailer emphasized that the job eliminations are intended to reinforce attention on its frontline workforce. In its statement, Lowe's said the change is designed to allow the company to "strengthen our frontline focus while remaining agile in a dynamic home improvement environment."
According to the company, the staff reductions amount to less than 1% of Lowe's total headcount, which stands at about 300,000 employees. Management indicated that those impacted will be provided with financial support and career transition resources during the period following the change.
The timing of the cuts coincides with other notable moves by the Mooresville-based retailer. In the past year, Lowe's has pursued large acquisitions aimed at expanding its exposure to professional customers, including a reported October purchase of Foundation Building Materials for $8.8 billion and a June acquisition of Artisan Design Group for $1.3 billion.
Despite the reduction in corporate personnel, Lowe's continues to signal plans for physical expansion. Company management previously outlined intentions for a new wave of store openings to commence over the next several years.
The layoffs were announced just weeks ahead of the company’s scheduled fourth-quarter earnings report to shareholders. Beyond the company's public statements on the scale and focus of the cuts and the assistance to be provided to affected employees, details on the specific corporate functions and roles impacted were not disclosed in the announcement.