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Neiman Marcus to cut around 500 jobs as chain braces for downturn

Neiman Marcus

Luxury retail chain Neiman Marcus is set to cut five percent of its workforce, resulting in nearly 500 employees losing their jobs.

Various roles across the firm are expected to be impacted, including those in merchandising, supply chain, technology, and retail.

The company has not revealed the exact amount of layoffs as there are a number of unfilled positions, and some staff members may look to move internally.

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The luxury retail chain is preparing for a business slowdown, despite giving out record cash bonuses over the last two years.

One source said the job cuts are “due to our failure to hit the sales plan we submitted. Business is soft, not so terrible, but behind the growth we projected.

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“This is really a result of poor financial planning and an unwillingness to budge from that error.”

Sources said executives at the vice president level would be granted severance packages of approximately six months.

They noted that if those executives find another job before then, they will not get future payouts.

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One employee regarded the severance terms as “harsh.” 

Bob Kupbens, Neiman Marcus' chief product and technology officer since February 2021, is departing.

The impending layoff is a far cry from the previous two years when CEO Geoffroy van Raemdonck lavished himself and other executives with huge bonuses.

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It was after the company recovered from bankruptcy in September 2020. 

Van Raemdonck had already come under fire for taking almost $10 million in bonuses during the height of the pandemic.

He also got benefits, such as an enormous health care plan.

Employees were facing pay cuts and layoffs when the payments were issued.

The Neiman Marcus Group employs around 10,000 people.

Source: New York Post

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