Nordstrom has announced the closure of two of its corporate offices in Los Angeles and Chicago, with employees being asked to either transition to fully remote roles or to relocate to the company’s headquarters in Seattle. The decision to close these offices was based on low usage of the spaces. While most employees will be allowed to work remotely, some will be required to move to Seattle. Nordstrom will continue to maintain its office in New York City, using store locations in Los Angeles and Chicago for smaller team gatherings. This move comes amidst a trend of companies reducing their office space as they adopt hybrid or remote work policies.
The decision to consolidate real estate comes as the Nordstrom family considers taking the company private. The company reported a net loss of $39 million in the first quarter, which was below expectations. Despite this, net sales grew by 5.1% to $3.2 billion. As of February, Nordstrom employed around 54,000 people, with a majority of corporate roles based in Seattle. The company’s workforce is primarily focused on supporting stores and its supply chain network, with only a small percentage held in the corporate offices being affected by the closures.
Nordstrom currently operates 365 stores, up from 347 the previous year, with the closure of its flagship San Francisco store in the previous year. The decision to cut back on office space and consolidate operations is seen as a cost-saving measure for the company. With changing work trends and the increasing acceptance of remote work, many companies are reevaluating their office needs. Nordstrom’s move to close offices and transition to remote work reflects this changing landscape and the evolving needs of its workforce. By streamlining its real estate footprint and allowing more employees to work from home, Nordstrom aims to adapt to the new normal of work in a post-pandemic world.
Overall, the move by Nordstrom to close two of its corporate offices and shift to a more remote work model is part of a larger trend in the business world. As companies adapt to changing work preferences and economic conditions, many are reevaluating their office space needs and embracing remote work policies. Nordstrom’s decision to consolidate its real estate holdings while maintaining its presence in key locations like Seattle and New York City reflects its commitment to adapt and thrive in the evolving business landscape. With a focus on cost savings and maximizing efficiency, Nordstrom is positioning itself for success in a post-pandemic world where remote work is increasingly becoming the norm.
