Saks Global cuts 16% corporate jobs as bankruptcy exit nears
Luxury retail giant Saks Global is moving closer to a bankruptcy exit, but its restructuring is still resulting in additional job cuts.
Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks Off 5th, filed for Chapter 11 bankruptcy in January of this year.
As part of the broader restructuring, it has already closed several stores and cut more than 1,200 jobs at locations across the U.S.
Those earlier cuts were revealed in multiple WARN filings and included layoffs across 12 locations, including Saks stores and a Pennsylvania facility, which TheStreet previously reported.
Now, Saks Global is cutting deeper at the corporate level as it works to emerge from Chapter 11 bankruptcy later this year.
Saks Global cuts hundreds of corporate jobs
Saks Global is laying off about 16% of its corporate staff, or roughly 640 jobs, according to the Wall Street Journal.
The cuts do not include store or distribution-center positions and represent less than 4% of the company's total workforce.
The latest layoffs come as Saks Global tries to shrink its operating footprint and streamline its business after its bankruptcy filing.
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Some of the cuts are tied to Saks Global's move to exit certain businesses and simplify operations. Others are connected to changes following Saks' 2024 acquisition of Neiman Marcus.
Saks Global CEO Geoffroy van Raemdonck, in an official statement, said that these cuts are strategic as the company adapts to changing business needs and will require a smaller operational footprint.
The latest corporate layoffs add another layer to the company's restructuring.
In March, Saks & Company WARN filings showed 1,226 job cuts tied to store and facility closures, including layoffs in Missouri, Maryland, North Carolina, Nevada, Ohio, Florida, Virginia, Illinois, California, and Pennsylvania.
Saks moves closer to bankruptcy exit
The layoffs come as Saks Global reaches a major milestone in its bankruptcy case.
Saks Global said it received approval from the U.S. Bankruptcy Court for the Southern District of Texas for the company's explanation of its restructuring plan.
This means that Saks can now ask creditors to vote on the plan and, with enough support, can exit Chapter 11 bankruptcy as early as this summer.
"Today's significant step forward demonstrates our continued momentum toward emergence this summer with a strong foundation for long-term growth," said Raemdonck.
Adding that the company has made significant progress over the past three and a half months, and its future will continue to center around customers, giving them "a true luxury shopping experience."
Related: 58-year-old outdoors retailer nears Chapter 11 bankruptcy
Saks Global's amended plan also lays out longer-term goals for the business. The company said it aims to generate $9 billion in total gross merchandise value by fiscal 2030 and deliver double-digit adjusted EBITDA by then.
The company said it expects to exit bankruptcy with nearly $700 million of liquidity. Saks Global noted that its capital partners have committed to providing $500 million in exit financing.
"The committed capital we have secured, along with the growing momentum across our business, sets the stage for a successful future," said Raemdonck. Further noting that it is confident it will drive Saks Global to profitability in the coming years.
The latest cuts show how Saks Global is trying to emerge from bankruptcy as a smaller, more focused luxury retailer. It is now trying to protect its position in luxury retail while cutting costs, closing weaker locations, and rebuilding vendor confidence.
Saks Global's bankruptcy filing came during a difficult stretch for parts of the fashion and luxury retail industry.
Pat McGrath Labs, the prestige makeup brand, also filed for bankruptcy in January and exited Chapter 11 in April after securing about $65 million in financing.
These filings reflect a broader reset in the luxury and fashion industry, where shoppers have become more selective, and companies are under pressure to protect margins as they adapt to new buying habits.
Rental and resale platforms like Nuuly and Rent the Runway have also changed how some consumers access designer fashion, making the traditional full-price luxury market more competitive.
A McKinsey analysis of the state of fashion in 2026 notes that leaders are "pessimistic," with 46% expecting "conditions to worsen in 2026." Especially in North America, where executives viewed the market as "unpromising or very unpromising."
For Saks Global, this bankruptcy exit will mean more than just cutting costs. It is to successfully adapt and compete in a market where shoppers have more options and brands are working harder to win demand.
Related: Mall fashion retailer closes 150 stores in turnaround push
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This story was originally published May 5, 2026 at 4:03 AM.