According to a report in the Wall Street Journal, Lowe’s 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, Lowe’s employs nearly 300,000 full-time and part-time employees—two-thirds of those being the former.
Editor’s Note: Check out our Lowes vs Home Depot article for our take on these two behemoth home improvement stores.
Lowe’s Lays Off 1000s of Workers
As competition from Amazon.com heats up and import tariffs affect profitability, companies like Lowe’s seem to be searching for ways to maintain both market growth and profitability. In this case, the new Lowe’s 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.
Lowe’s isn’t alone in this. We’ve seen similar pull-backs from major tool manufacturers as well as other retailers as they seek to grow and thrive. We’ve also seen increased use of self-checkout which also signals an effort to reduce labor costs through automation.
