Lowe's cuts 2,400 managers to refocus on customers

Lowe's, the home improvement chain, said Wednesday that it is redeploying its workforce in a way that will eliminate about 2,400 positions, most of them in management.

The biggest change will occur in the stores, where Lowe's says it can cut one  or two assistant manager positions as it tries to shift the focus "from back-of-the-store activities to customer facing ones," the company said in a statement. The move will "enhance our efficiency and productivity."

Lowe's had 2,119 home improvement and hardware stores in the U.S. at the end of its third quarter, Oct. 28. At that time, the chain reported having adjusted net income of $775 million, up 5.3% compared to the year before.

The new model will shift responsibilities in ways that some store workers will get new responsibilities. The goal is to get the new model in place for spring, a big-selling season in the home improvement business.

Lowe's says it has also cut 37 employees who worked in "leadership positions" in its customer support and distribution centers. It's also eliminating 10% of the vice presidents in its corporate office. In total, the chain based in Mooresville, N.C., says the cuts amount to less than 1% of its workforce.

"It is always difficult to make decisions like these that affect our people, but sometimes they are necessary as we build for the future and meet the evolving needs of consumers," Lowe's said in the statement.

Lowe's and its rival, Home Depot, have been helped by improving home sales that drive more home improvement projects. The company told investors at a conference last month that it is focused on trying to reach more potential customers and building loyalty from the current ones.