Home improvement retailer Lowe’s is changing its store staffing model and will lay off less than 1 percent of its employees in the near future, CNBC reported Thursday, citing a person familiar with the matter.
The person did not share the exact number of layoffs at the Mooresville-based company, which employs more than 285,000, CNBC reported. Lowe’s employs approximately 4,000 at its Mooresville customer support center.
Company spokespeople did not immediately respond to requests for comment.
As part of its reshuffling, Lowe’s is shifting roles and responsibilities for some of staff and eliminating some jobs, CNBC reported.
Some of the affected workers will be moved to new roles at the company, and others will be promoted, CNBC reported. A portion will be laid off as some positions are consolidated.
The new staffing model will be implemented nationwide and is designed to free up resources to boost face time with customers, as the retailer adapts to evolving customer needs, according to CNBC.
“While we have no announcements to share, we continually evaluate our staffing model to ensure we have the resources in place to serve customers’ evolving expectations and their home improvement needs,” Lowe’s spokeswoman Colleen Penhall told the Observer in a statement.
Lowe’s has been doing some downsizing recently.
In October, the company announced layoffs of 95 employees in its information technology department following a review of its IT resources, which Lowe’s said resulted in the “streamlining” of IT processes.
Sixty of those positions were at Lowe’s corporate headquarters, with the remainder at other company locations in North Carolina and Texas, a spokeswoman said at the time.
Also, in November, the company said it started reducing store employees’ hours in the U.S. as a way to improve profitability, after a slowdown in customer traffic in the late summer months.
During a conference call with analysts that month, Lowe’s executives said slower sales in August and September put pressure on the company's profitability for the third quarter. CEO Robert Niblock said one of the ways the company sought to improve shareholder value is to “better match labor to demand.”
Most of the “labor adjustments,” Niblock said, were in stores rather than at the corporate office.