Since early 2023, the retail industry has grappled with mounting challenges, particularly rising labor costs and persistent inflation. In response to ongoing financial pressures, many major retailers—ranging from large department stores to smaller e-commerce brands—have implemented workforce reductions.
Most of these layoffs have targeted corporate roles, while frontline retail employees have largely remained in place. Economists refer to this approach as “labor hoarding,” a strategy that prioritizes customer-facing positions while scaling back administrative and support staff.
More than 30 companies announced layoffs throughout the year, with job cuts affecting hundreds or even thousands of workers across the United States and internationally. These decisions reflect a broader trend of operational restructuring as the retail sector adapts to fluctuating economic conditions.
Below is a list of prominent retailers that reduced staff in 2023.
1. **VF Corp**
VF Corporation, the parent company of brands such as Vans, confirmed it would eliminate 500 salaried positions as part of a broad organizational restructuring. These layoffs affected employees across multiple regions and reflect the company’s efforts to realign operations with current market conditions.
According to Retail Dive, the job reductions are part of VF Corp’s strategy to improve global efficiency, enhance profitability, and better position itself in a highly competitive retail landscape. The company aims to streamline corporate functions and adapt its business model for long-term growth and resilience.
2. **TJX**
TJX Companies, the parent company of retailers such as TJ Maxx and Marshalls, announced plans to close three U.S. stores in early 2024. These closures will primarily impact workers in New York, where approximately 169 employees are expected to lose their jobs, according to a WARN notice filed by the company in October.
In response, TJX stated that it is working to support affected staff by offering them opportunities at nearby store locations. A company spokesperson confirmed that efforts are being made to minimize disruption and retain as many employees as possible within the organization.
3. **REI**
Outdoor retailer REI recently announced the layoff of approximately 275 employees as part of a broader effort to restructure its store operations. According to the company, the changes are intended to streamline in-store processes and reduce staffing needs in alignment with its updated business model.
This follows a previous round of layoffs in January, when REI cut 167 corporate roles at its headquarters, representing about 8 percent of its headquarters staff and roughly 1 percent of its total workforce. As reported by Retail Dive, the company continues to adapt its operations in response to shifting market conditions and evolving consumer behavior.
4. **Express**
Clothing retailer Express, which also owns Bonobos and UpWest, announced in August 2023 that it would lay off approximately 150 employees. The decision is part of a broader effort to realign operations and improve financial performance.
The company aims to achieve $150 million in cost savings by 2025. The recent job cuts are expected to contribute significantly to that goal. These changes follow earlier restructuring efforts, including the closure of 100 stores by the end of 2022. Express continues to adjust its business model in response to evolving market challenges and long-term profitability objectives.
5. **Funko**
Funko, best known for its popular collectible figurines, announced plans to lay off approximately 180 employees in response to continued financial challenges. The decision comes after the company reported a sustained decline in sales during its second quarter.
The layoffs represent around 12 percent of Funko’s total workforce, highlighting the scale of the impact. The company stated that the reduction is a necessary step to align its operations with current business conditions and address ongoing revenue pressures.
6. **Amyris**
Biotechnology company Amyris has announced a strategic restructuring plan that includes discontinuing two of its beauty brands, Costa Brazil and Onda Beauty. The move is intended to allow the company to streamline operations and refocus resources on more profitable areas of the business.
As a result of this decision, approximately 36 positions are expected to be eliminated. According to reporting by Business of Fashion, the job reductions are part of a broader effort to consolidate Amyris’s beauty portfolio and improve financial stability.
7. **Wish**
Online retail platform Wish has confirmed plans to reduce its workforce by 255 employees before the end of the year. The announcement was detailed in a filing submitted to the U.S. Securities and Exchange Commission on August 1, outlining the scope and timing of the layoffs.
The planned job cuts will impact 41 percent of the company’s U.S.-based workforce and 26 percent of its international employees. This move reflects a global restructuring effort as the company seeks to adapt to ongoing financial pressures.
Wish is among many retailers facing operational challenges since early 2023. Rising labor costs and inflation have created significant obstacles for businesses across the industry. In response, numerous major retailers have reduced their workforce as part of cost-saving measures or broader restructuring plans.
While many job cuts have targeted corporate and support roles, frontline retail employees have largely been retained. Economists refer to this strategy as “labor hoarding,” highlighting efforts to preserve customer-facing positions while scaling back back-office operations.
More than 30 companies have announced layoffs this year, affecting hundreds or even thousands of employees across the globe. Wish’s decision is part of this broader trend reshaping the retail landscape in 2023.
8. **CVS**
Pharmacy giant CVS recently revealed plans to reduce its workforce by approximately 5,000 positions as part of a strategic review amid industry-wide adjustments. This decision reflects efforts to realign resources with evolving business priorities while navigating external financial pressures affecting the retail sector.
The majority of job cuts will occur within corporate functions, primarily impacting administrative and support roles that do not involve direct customer interaction. Frontline employees, including those working in CVS stores and pharmacy staff, are expected to retain their positions.
This approach underscores CVS’s focus on maintaining strong customer service by preserving essential in-store personnel while streamlining back-office operations. The Wall Street Journal reported these developments, highlighting the company’s intention to protect the customer-facing workforce during this restructuring.
9. **Lululemon**
In 2023, athletic apparel leader Lululemon restructured part of its workforce as it adjusted its strategic priorities. The company laid off 100 employees within its Lululemon Studio operations, which includes the Mirror fitness technology brand.
This reduction reflects a strategic shift away from hardware products like the Mirror device, with greater emphasis placed on digital services and app-based fitness offerings. The staff cuts and restructuring align with Lululemon’s move toward a software-first approach, reshaping how customers engage with their fitness experiences.
10. **Peloton**
Connected fitness company Peloton revealed plans to lay off 11 employees in 2023 as part of an operational restructuring related to relocating its headquarters. This workforce reduction is notably smaller compared to broader industry layoffs.
The affected staff members were based at Peloton’s Midtown Manhattan office. The layoffs, scheduled for October, result directly from the company’s decision to consolidate operations and establish a new main office in Plano, Texas. Roles were either eliminated or shifted as part of this transition.
A WARN notice publicly filed by Peloton detailed these staffing changes, emphasizing the strategic nature of this move rather than widespread downsizing.
11. **Walgreens**
Walgreens, one of the nation’s largest drugstore chains, implemented significant job cuts in 2023 as part of broader efforts to streamline its operations. The company announced the elimination of 504 positions, representing approximately 10 percent of its corporate workforce.
According to a report by the Chicago Sun-Times, the layoffs were limited exclusively to corporate roles. Frontline employees working in stores, call centers, and fulfillment centers were not affected. This strategy reflects a growing trend among major retailers, who are prioritizing customer-facing positions while reducing administrative staff.
The decision underscores Walgreens’ aim to improve operational efficiency without disrupting customer service.
12. **The Container Store**
In 2023, The Container Store, a retailer specializing in storage solutions, announced a series of workforce reductions as part of a broader restructuring plan. These cuts were disclosed during a quarterly earnings call in May.
The company revealed that approximately 15 percent of its support center staff, which includes corporate and administrative personnel, would be laid off. Additionally, reductions were planned for store employees and distribution center workers, with about 3 percent of staff affected in each of those areas.
The broad scope of the layoffs reflects the company’s effort to align staffing levels with operational needs and manage costs more effectively. The initiative aims to improve overall efficiency across both corporate and customer-facing functions.
13. **Allbirds**
Sustainable footwear brand Allbirds reduced its global workforce in 2023 as part of a broader organizational restructuring. The layoffs coincided with a shift in executive leadership and operational realignment.
According to a filing submitted to the U.S. Securities and Exchange Commission in May, the company eliminated 21 positions across its international operations. This move came during a period of strategic review aimed at refining its business model.
The timing of the layoffs aligned with a key leadership change. Tim Brown, formerly co-chief executive officer, transitioned into the role of chief innovation officer. These structural adjustments suggest a renewed focus on innovation and resource optimization as the company adapts to evolving market conditions.
14. **Dollar Tree**
In 2023, Dollar Tree, which also operates Family Dollar stores, announced a targeted reduction in its corporate workforce. The layoffs did not impact in-store employees but were limited to staff based at company facilities in Chesapeake, Virginia.
According to a report confirmed by Retail Dive in May, approximately 90 corporate positions were eliminated. The move was part of an internal realignment aimed at streamlining operations within the organization’s administrative functions.
These layoffs primarily affect corporate staff responsible for providing planning and support services to retail stores. The decision to concentrate job reductions at the Chesapeake office reflects a broader trend among retailers. Many companies are streamlining central support functions to respond to economic challenges more effectively. By doing so, they aim to reallocate resources toward core business operations.
