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Report: Nordstrom trims IT staff


As part of a leveling of its technology spending, Nordstrom Inc. has made a reduction in its technology personnel.

According to Geekwire, Nordstrom recently laid off 10 employees in its technology department.

“For the past six months, Nordstrom has been taking a closer look at our technology team to ensure it is best structured to provide a competitive advantage for Nordstrom,” a spokesperson for the retailer told GeekWire. ”Where some roles have been added and leaders were moved or promoted into them, others will no longer be needed to support the future direction of our organization.”

Nordstrom said it is still finalizing its new technology structure. Details on which exact positions were eliminated are not currently available.

The job cuts come on the heels of Nordstrom announcing during its fourth quarter earnings call that it will maintain its fiscal 2015 IT spending level of $300 million during fiscal 2016. That figure represented a 35% increase from the retailer’s 2014 technology budget.

During a recent analyst call, Nordstrom CFO Michael Koppel said the retailer will focus on fewer, more meaningful IT projects in the coming year. These are set to include a scalable, omnichannel merchandising system, as well as more efficient and cost-effective deliveries.

Although Nordstrom’s revenues and same-store sales both improved in the fourth quarter, profits fell 9% to $180 million from $255 million. However, sales rose 11%, compared to a 5% overall sales increase.

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