Nordstrom To Cut Nearly 380 Jobs Amid San Francisco Store Closures

Nordstrom has decided to axe nearly 380 jobs at two of its stores in San Francisco as the luxury department store chain prepares to shut down both locations amid rising retail crimes in the city.

The job losses will hit two Nordstrom retail outlets on Market Street, as per WARN notices sent to San Francisco Employment Development Department, Mercury News reported. Around 333 people will be laid off at the Nordstrom department store located in the Westfield shopping mall. Another 46 people will be axed at a Nordstrom Rack on Market Street.

Meghan Hannes, Nordstrom's human resources director, said it is likely that certain employees will be offered a transfer opportunity to other Nordstrom locations. "We have not yet determined who will be offered these opportunities," Hannes wrote in the WARN notice, as per New York Post.

While Nordstrom Rack layoffs will take place on July 1, the Nordstrom department store will cut its jobs on Aug. 27.

The Seattle-based clothing retailer becomes the latest company to announce layoffs and business closures in the wake of rising shoplifting and retail crimes in Golden Gate City.

Since none of the Nordstrom workers at the two sites are represented by a union, they don't have bumping rights. "No employees at this location have bumping rights," Hannes added in the letter.

Nordstrom announced the closure of the two stores earlier this month citing the "changing dynamics" of the area in the city that hasn't recovered from the pandemic and surging crime.

"Decisions like this are never easy, and this one has been especially difficult," Nordstrom's chief stores' officer, Jamie Nordstrom, wrote in a memo to employees. "But as many of you know, the dynamics of the downtown San Francisco market have changed dramatically over the past several years, impacting customer foot traffic to our stores and our ability to operate successfully.

"We're working with each impacted employee to support them through this transition and find new roles within the company wherever possible," Nordstrom added in the memo.

A spokesperson for the Westfield Mall said the store's closure "underscores the deteriorating situation in downtown San Francisco."

"A growing number of retailers and businesses are leaving the area due to the unsafe conditions for customers, retailers, and employees, coupled with the fact that these significant issues are preventing an economic recovery of the area," the spokesperson told KGO-TV.

Meanwhile, Nordstrom cut up to 222 jobs from its Iowa distribution center to reduce its supplier expenses last September.

Incidents of shoplifting are on the rise in Golden Gate City, resulting in retail crimes gaining more national attention. From small to large retailers, businesses are struggling to contain organized store crimes, including shoplifting and burglary and keep up with escalating inflation. Even though the numbers are below 2017 levels, there was a 23% increase in retail crimes between 2020 and 2022, according to San Francisco Police Department data.

Not only Nordstrom, other big chains, including Target and Whole Foods are moving their businesses out of San Francisco because of major shifts in economic conditions, thefts and employee safety, among other reasons. A San Francisco Target store chained several of its cosmetic and toiletry products behind glass boxes to overcome the shoplifting crisis crippling the city.