Nordstrom Lays Off 1,600, Turns to Discounting to Move Inventory

Seattle– Slumping sales have caused apparel cataloger/retailer Nordstrom to lay off 1,600 employees—about 4% of its total workforce–during the past 30 days. About 250 of those employees worked at the company’s headquarters.

And to decrease inventory and boost sales, the company is holding an unprecedented fall sale through Oct. 8. Nordstrom is offering discounts of 33%-60% on merchandise in all of its stores and on its Website. This is the first time the company has added another major sale to its calendar since it began selling apparel in 1963. Nordstrom typically hosts only three major sale events a year: the Nordstrom Anniversary Sale in July and two Half Yearly sales on clearance merchandise in June and November. Nordstrom will donate 1% of all sales during that time from its full-price and off-price stores and its Website to the American Red Cross, with a guaranteed minimum donation of $1 million.

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