Hudson's Bay Co. cutting 265 jobs

Hudson's Bay Co., the parent company of Saks Fifth Avenue and Lord & Taylor, has announced plans to cut 265 jobs across North America. The department store chain noted that they will be taking a 20 million dollar charge in the third quarter due to this action. The layoffs won't affect any sales associates or employees who work directly in the store, but, rather, the layoffs will come from the corporate side of things in departments like IT, finance, and accounting.

The majority of the jobs eliminated will be in the United States, although the company has declined to state what the exact figure for jobs eliminated in the U.S. and in Canada is.

Despite the announcement of bad news, Hudson Bay's shares actually closed up more than 6 percent.

The layoffs are expected to save the company 75 million dollars for the 2016 fiscal year. While the company might be seeing layoffs, they still have plans to open seven new Saks Fifth Avenue stores next year and twenty-five Off 5th locations. The company has also announced they are buying the struggling German chain Kaufhof for 3.3 billion dollars. The deal is expected to close in the third quarter of the fiscal year.