Lowe’s to Lay off Thousands of Workers, Outsource to Third Parties

In an attempt to turn the company’s finances around, home improvement retailer Lowe’s is reportedly set to lay off thousands of employees and outsource their jobs to third-party companies. The retailer currently employs roughly 300,000 people — 190,000 full-time and 110,000 part-time — in the United States, Canada and Mexico.

An exact number of layoffs is not known, according to CNN, who first reported the news Thursday. The layoffs will reportedly affect assemblers, who put together items such as grills and patio furniture, as well as maintenance and facility-service jobs. Those roles will be taken over by third-party companies.

“We are moving to third-party assemblers and facility services to allow Lowe’s store associates to spend more time on the sales floor serving customers,” a Lowe’s spokesperson told the outlet.

The spokesperson added that those affected by the layoffs will have the opportunity to apply to open roles at the company. They will also receive transition pay.

The planned layoffs come less than a year after the home improvement store announced that it would be closing 51 stores across the United States and Canada as part of an “ongoing strategic reassessment.”

“While decisions that impact our associates are never easy, the store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” Marvin R. Ellison, Lowe’s president and CEO, said at the time. “We believe our people are the foundation of our business and essential to our future growth, and we are making every effort to transition impacted associates to nearby Lowe’s stores.”

At the time, it was reported that the closures would affect 20 stores in the United States and 31 stores in Canada, the majority of which are within 10 miles of another Lowe’s location. It is believed that 47 stores have since closed.

The closures followed the shuttering of the company’s Orchard Supply Hardware chain of 99 stores along with a slashing of inventory at other Lowe’s locations.

The closures and layoffs come amid a shifting retail landscape, in which online shopping, like Amazon, has assumed a larger and larger place in the market.

In October of 2018, American retailer Sears announced the possible closure of more than 10 stores, which followed the earlier closures of dozens of other locations, the company citing non-profitability.

Famed toy retailer Toys ‘R’ Us also shuttered all of its stores, though it has since made a comeback, announcing that fewer than 10 stores will reopen for the Christmas season.