The full number hasn’t been officially released, but roughly 25% of HQ positions were eliminated due to COVID-19. Mine was one eliminated, and I worked in HR. COO exited, as did Intimates brand president, multiple VP-level roles, and SVP supply chain.
6 replies (most recent on top)
2020/21 PREDICTIONS: It would be a win if Chicos FAS could hold off on additional layoffs until the announcement of Q4 2020 earnings that will undoubtedly be dismal. As such, the company will be compelled to make human sacrifice to the Wall Street gods in exchange for a shot at redemption in 2021.
That timing works with the 12-month shareholder rule adjustments running from April 2020- April 21 designed to fight off any hostile takeover. Essentially a "poison pill" for another retailer or more likely a private equity group looking to buy Chicos FAS on the cheap by acquiring controlling interest through share purchases. As good a plan as any to ensure management stability and ongoing operations through 2021.
CURRENT CHALLENGES: Perhaps that will be allow time to rapidly grow Soma revenue to a size sufficient to sustain Chico's FAS when combined with the namesake Chicos brand (undoubtedly with a much smaller corporate headcount.) But even if such a Soma "Hail Mary" works, that won't save most of the WHBM walking dead at corporate.
First, the Covid-19 Pandemic has effectively:
- Prohibited attending any social events (k–ling demand for the bread-and-butter WHBM Occasion/Evening/Social wear business), and...
- Slashed demand for workwear without a drawstring waist (especially coordinating outfits for business meetings/presentations/conferences that are the highest margins in the business.
These are likely mortal wounds to a business built on dressing customers for work events and social occasions. Combine Covid-19 with a new racial/social paradigm sparking protests, riots and tension between the actual US "White House" vs. the "Black Lives Matter" movement, and... RIP WHBM.
The "White House Black Market" brand was already dated, tired and irrelevant. Now it also feels racial and icky, if not downright toxic. (Side note: a gated entrance to the WHBM corporate offices that enters from "Plantation Road" is certainly an unfortunate coincidence of geography.)
FUTURE OUTLOOK: Look for the company to announce major layoffs driven by an accelerated exit strategy for the WHBM brand when the company announces annual earning for 2020 in early 2021.
Note a possible alternative that would save jobs would be to rebrand WHBM as something akin to "TBD Apparel by Soma" and leverage the high levels of customer engagement with the growing "Soma" brand to keep the (formerly WHBM) apparel business afloat (even if only by it's bra straps.)
It's sad that this company that was a source of local pride is treating their associates in this manner. Bonnie Brooks actually saylid that non severance is helping the laid off associates because then they qualify for stimulus payments. Completely out of touch and insensitive.
I'm still trying to file for unemployment. It's been weeks so how exactly is no severance supposed to help anyone? Bunch of corporate a–holes.
There are two type of managers at store level. General Store Managers who are salaried and Store Managers that are hourly this is mainly determined by the volume size of the store location.
GSMs are asked to schedule ourselves 40 hours but are at only 50% pay. Not okay!
Hourly store managers though can go back full-time.... now we are in a position to have to ask to go furlough because we cant pay our bills.
I was proud to work for this company...now I am ashamed of how we are handling this situation.
Absolutely there are difficult business decisions that have to be made but the way you make them is within your control. The lack of empathy, communication and common decency is beyond belief.
The layoffs with No Severance for employees that have put in well over 10 years is a HUGE Slap in the face and definitely not the company I used to love working for.
I have heard 250 people were released, but the actual number has been hush hush. Chico’s is offering one month of healthcare and zero severance to the laid off employees; meanwhile the board and CEO continue to be paid and bonuses were paid out to several employees released last year.
No severance was given to any low level employees (most had been there 10-20 years). Shame on the CEO and the current board. #boycottchicos