Home-improvements products chain based in North Carolina Lowe’s is cutting off thousands of employees from in-store jobs. The company is seeking the assistance of the third-party companies to outsource the in-store job roles. Also, the company took this decision to improve the profit figures. The company has not shared any statistics of the laid-off employees, but according to the press, there are more than a few thousand employees affected. Lowe’s informed thousands of its employees about the termination and asked them to seek other opportunities.
When asked for a comment, Lowe’s spokeswoman Jackie Pardini Hartzell said that the layoff was scheduled for improving the profits. As Lowe’s is moving to the third-party suppliers and manufacturers, the store associates would have to spend more time on the floor, helping the customers. As outsourcing will help the company to reduce the human workload, the company decided to layoff thousands of on-floor employees to cut costs. The employees of Lowe’s that lost the jobs are from the assembly and manufacturing division, while some of them are janitors. Fortunately, the laid-off employees will have the first chance to apply for other open job offers at Lowe’s and will be given preference over the others.
As the company has a relatively new CEO, Marvin Ellison, they are planning to streamline the business with the cost-cutting. Lowe’s main aim currently is to improve the profit figure by outsourcing cheap labor and then focusing on the Home-improvement business. CEO Marvin Ellison joined last year and already shed some ineffective executives. Also, he cut down the non-selling products from the catalog, focusing only on popular products. As his decisions are taking a positive toll on the company, the management allowed him to Layoff thousands of employees. The company is not disclosing any information about the number of employees that were sent home.