Nordstrom restructures tech team

Nordstrom store front facing mall
Mike Mozart / CC BY 2.0

Nordstrom (NYSE:JWN) has laid off 120 people in its technology department in a restructuring that is part of the company's planned spending cuts after a series of disappointing quarters.

CFO Michael Koppel outlined plans to streamline technology investments to support digital growth during a conference call with analysts in February. "In technology, we are planning productivity improvements by focusing on fewer, more meaningful projects, such as a scalable merchandising solution that supports seamless integration across multiple channels."

"In addition, we are accelerating our efforts to re-platform our architecture to streamline development while reducing costs."

Nordstrom plans to spend $300 million on technology and e-commerce enhancements this year, in line with 2015 spending. The restructuring and staff reduction is part of this attempt to rationalize spending.

"Over the last several years, we've clearly been investing aggressively to grow our business," said Koppel. "We've grown our business successfully. It's a new channel that is being built out that is still in the relatively early stages of its process and I think we've reached an inflection point where after growing it to the level we have that we're spending a little bit more time focused on then how to turn a lot of that growth into some more profit."

E-commerce is now accounts for 20 percent of total sales at Nordstrom, thanks in part to some of these earlier investments, including new mobile shopping features such as text to buy and curbside pickup for online orders.

For more:
-See this GeekWire article
-See this conference call transcript at Seeking Alpha

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