Retailers use layoffs as a hedge against potential downturn

Saks Off Fifth laid off an unspecified number of workers on Tuesday. Saks.com cut about 100 workers from its payroll. Stitch Fix, Wayfair and others have also cut job cuts the start of 2023 as they attempt to operate profitably. “Retailers are really being cognizant of capital preservation,” said Catherine Lepard, who leads the global retail market for Heidrick & Struggles. “They don’t know how long this cooler economy is going to last, and they want to make sure they have the right cash to get through that. For retailers that are struggling, it really means tightening the belt with some cost cutting.”