According to a report in the Wall Street Journal, Loweโs issued notifications to many staff in its assembly and maintenance departments that their jobs would be outsourced. These departments are responsible for, among other things, assembling products like patio furniture and grills and providing janitorial services. The laying off of 1000s of workers effectively displaces several people from each of its 1800 US-based stores. Currently, Loweโs employs nearly 300,000 full-time and part-time employeesโtwo-thirds of those being the former.
Editorโs Note: Check out our Lowes vs Home Depot article for our take on these two behemoth home improvement stores.
Loweโs Lays Off 1000s of Workers
As competition from Amazon.com heats up and import tariffs affect profitability, companies like Loweโs seem to be searching for ways to maintain both market growth and profitability. In this case, the new Loweโs CEO, Marvin Ellison, seems to believe that transitioning to outsourcing for these areas can reduce some overhead employment costs.
The article also indicated that full-time workers who are let go are receiving roughly two weeks pay as opposed to a severance compensation package.
Loweโs isnโt alone in this. Weโve seen similar pull-backs from major tool manufacturers as well as other retailers as they seek to grow and thrive. Weโve also seen increased use of self-checkout which also signals an effort to reduce labor costs through automation.
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