Book Retailer Faces New Labor Model
TWIN FALLS, Idaho (KLIX) – Retail book giant Barnes & Noble is remodeling its stores – but not in the way you might think.
The company is developing a new labor model that will result in job cuts, saving the company roughly $40 million annually. It started laying off employees on Monday at stores across the country, but it is not known if the Twin Falls store is affected by the layoffs.
News Radio 1310 reached out to company headquarters, but officials there would not elaborate on the layoffs outside of its 8-K filing, which, in part, reads that the company
has implemented a new labor model for its stores that has resulted in the elimination of certain store positions. The new model will allow stores to adjust staff up or down based on the needs of the business, increase store productivity and streamline store operations. The Company wants to assure its customers that this will not affect its commitment to customer service.
"Given our sales decline this holiday, we’re adjusting staffing so that it meets the needs of our existing business and our customers,'' the company said in a statement sent to the news site on Tuesday. "As the business improves we’ll adjust accordingly."
Barnes & Noble estimates it will incur a charge of about $11 million for employee-related severance costs, according to the 8-K filing.
Amazon, Walmart and other businesses are now competing in a sector once dominated by the book giant, making it tough for traditional stores and prompting them to look at new business models.