The start of 2025 has been challenging for the retail industry as retailers deal with changing trade policies and lowering consumer sentiment.
This has prompted many retailers to downsize their operations to stay afloat, and job layoffs in the US have been soaring. A report by Challenger, Gray & Christmas revealed that US retailers announced over 64,000 job cuts, a 296% increase year-over-year.
In the first month of 2025, 6,419 job cuts were recorded, marking a 20% increase from the previous year.
Retail Gazette US takes a look at the retailers laying off a number of employees in 2025.
Wayfair
Home goods retailer Wayfair cut off 340 jobs in its technology division in April as it shut down its Technology Development Center in Austin, Texas.
The reshuffle was part of the company’s plans to introduce advanced technology and streamline navigation for the company.
Wayfair said in a statement: “This journey required significant investment, dedication, and the collective effort of our talented technology teams.
“We now operate on a modern, scalable, and high-performance infrastructure designed to adapt to the evolving needs of our customers and business.”
Catalyst Brands
The parent company of J.C. Penney downsized its corporate workforce by 9% as it deals with its sales slumps due to mounting economic pressure.
It runs a number of brands under its portfolio, including Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, Nautica, and Forever 21.
Catalyst Brands has had a turbulent start to the year, with Forever 21 filing for bankruptcy, and it also offloaded Reebok’s US operations.
A spokesperson for Catalyst Brands said in a statement to Retail Dive: “We appreciate the contributions of all affected associates and are committed to supporting them with transition resources, including severance and benefits.
“While these are difficult choices, we are confident they will ultimately position us to better serve our customers and deliver on our mission to give them high-quality products at exceptional value for every moment in life.”
The number of employees set to be affected was not disclosed.
Starbucks
Starbucks announced plans to lay off 1,110 employees in its corporate sector as part of its broader restructuring plan, which is aimed at boosting its financial performance.
The coffeehouse chain downsized amid mixed results and aimed to streamline its operations and possibly reduce the overall costs.
Brian Niccol, Starbucks’s CEO, said: “We are simplifying our structure, removing layers and duplication, and creating smaller, more nimble teams.
“We intend to operate more efficiently, increase accountability, reduce complexity, and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities.”
Grubhub
The delivery platform had an operational shakeup after its acquisition by Wonder, slashing 500 jobs in March.
CEO Howard Migdal commented: “Since we closed the transaction with Wonder, we have been aligning on how our businesses work together to achieve our ambitious mission of becoming the primary destination for mealtime.
“In order to achieve our ambition, we must prioritize the right work and execute with speed and conviction by reducing management layers, bringing leaders closer to the business, and removing duplication.”
It plans to integrate the two companies’ operations moving forward and create new leadership positions.
Coty
Beauty giant Coty will lay off 700 staff members in an effort to boost their profit margins and maintain their strong performance amid a changing economic environment.
Sue Nabi, CEO of Coty, said: “With the cyclical and structural changes in the beauty industry and the global economy in recent years, including the rapid acceleration of e-commerce, the consolidation of retail channels and customers, and the new ways of consumer brand discovery, Coty must once again adapt and evolve.”
The beauty retailer expects its new program, which involves the mass job cuts, to result in savings of around $80 million before taxes.
Saks Global
Saks Global is closing a fulfillment center in Tennessee, and 450 jobs are expected to be slashed at the luxury retailer.
Additionally, the company cut off 5% of its workforce in January to lower costs as it deals with declining sales and lowering consumer sentiment.
A spokesperson for the company said to Retail Dive: “We are continuing the integration process following our recent acquisition of Neiman Marcus Group by consolidating functional leadership, clarifying key decision makers, and beginning to simplify our organizational structure.”
A survey by Saks Global Luxury Pulse in January revealed that luxury shoppers’ spending habits are changing, with only 43% expressing optimism about the economy, marking a 5% decrease year-over-year.
VF Corporation
The parent company of Vans laid off around 400 employees globally in May as part of its turnaround strategy for Vans.
A spokesperson for the company said in an email, “VF has been working to reorganize select commercial functions globally.
“While these decisions are never easy, we are confident this work will result in a stronger foundation that supports the company’s growth and value creation objectives.
“We’re committed to handling these changes with dignity and respect for all involved and want to thank those impacted through this process for their valued contributions to VF.”
VF downsized to maintain profitability after it posted its first profit in two years in January.
The Container Store
The Container Store announced plans to lay off 70 employees in tech and store operations positions in an effort to streamline its reporting structure.
It comes after the specialty retail chain reemerged from bankruptcy after filing in December 2024 and shedding nearly $88 million in obligations.
Joel Bines, The Container Store’s board chair, stated in a memo: “We believe in the future of The Container Store, the only national, multi-channel retailer dedicated to helping people improve their lives through the power of organization.
“The company emerged from its restructuring stronger and healthier, and we could not be more excited to help this incredible team recapture a dominant position and grow the loyal customer base.”
Walmart
In February, the retail giant announced its plans to lay off an undisclosed number of employees in its corporate workforce as it shifted its offices from Charlotte, North Carolina, to Sunnyvale, California.
Its employees were prompted to move to other locations or offered severance packages as the retailer prioritized in-person teams following the pandemic.
Chief People Officer Donna Morris stated in a memo: “Our values and culture are strategic differentiators for us as a company, and they are fostered by being together.
“We’ve already seen the benefits of having more teams working together in person, and today we are sharing another step that will help accelerate our momentum.”
Stater Bros.
Grocery retailer Stater Bros. laid off around 63 store clerks and blamed tariffs and inflation for its decision to downsize for the first time.
Peter Van Helden, CEO of Stater Bros., said: “With the recent announcements of new tariffs and probably more tariffs to come, it’s quite likely that inflation is going to take off even above the 4.5% we’re seeing now.”
The supermarket chain also struggled with rising competition from non-unionized grocers, with competitive pricing creating steep competition for the Southern California-based grocery chain.
Moving forward, the company predicts more job layoffs as inflation continues to rise.
As retailers navigate the increasing inflation, more operational changes can be expected over the next year. Downsizing is a method for retailers to reduce overall costs as they aim to maintain profitability or, in some cases, return from bankruptcy. The retail workforce will operate differently after being trimmed down, and over time, companies’ structures are set to evolve.
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