Nordstrom is making structural changes to its technology organization that will result in an undisclosed number of layoffs, according to a GeekWire story, which attributed the information to a memo written by Nordstrom CTO Edmond Mesrobian.
Meanwhile, senior vice presidents of technology Travis McElfresh and Magali Muratore are both leaving Nordstrom, though the departures were described as unrelated to the broader reorganization, according to the report.
Nordstrom is seeking to realign staff "around specific domains and align them against our biggest priorities," the memo stated, according to GeekWire. Nordstrom did not immediately respond to Retail Dive’s request for comment.
The structural changes in the technology group have come to light less than a week after Nordstrom reported a fourth quarter sales decline, along with more proof that its off-price brand is performing better than its flagship operation. Nordstrom co-president Erik Nordstrom told a Shoptalk audience that, while the retailer is moving in the right direction, it is moving too slowly.
In the memo, Mesrobian reportedly also touched on the need to deliver better experiences for customers, as well as using artificial intelligence to drive decision making for the company. Changes to the retailer’s supply chain were also discussed in order to optimize buy online, pickup in-store services and fulfillment goals.
Mesrobian was named CTO of Nordstrom last summer, after the retailer had gone more than 18 months without anyone in that leadership role. About a year ago, before Mesrobian’s arrival, the company acquired two retail technology start-ups and had been investing in a variety of technology endeavors. Given a new organizational structure and new priorities for its technology group, the sector may find out in the months ahead if this is the key to speeding up Nordstrom's progress.