We don’t expect significant layoffs before end of financial year (Jan 31st). 3Q was good, stock is up and the holiday event seems to be going fine.
Evaluations continue on where AI can be implemented, although progress is slow due to backlog and inability of the tech side to implement and put into production old projects that have languished. Some will be canceled.
Evaluation time is coming up for salary associates so we’ll see the normal reductions based on performance starting March/April.
Probably no significant workforce reductions until the May time frame. Once the new CEO is installed, it’s likely we’ll see some tech leadership turnover to increase focus on project delivery and stability.
We believe several areas are probably safe from the potential 2Q reductions, such as transportation, vision and store staffing. Expect a focus on market management and merchant areas with potential AI solutions to streamline the business side and a renewed emphasis on first to market activities.
We think the biggest resource impact could still be in tech but not until 2Q.