DULUTH — Maurices recently laid off 24 employees in its corporate offices and field leadership positions.
The reduction in force was announced April 18. The cut represents 5% of the company's home office and field leadership population.
“This unfortunate reduction in force is necessary to position the company to weather the current economic downturn," Sue Ross, chief human resources officer, said.
Challenging market conditions and the overall macroeconomic environment contributed to the decision, according to a statement from the company.
All impacted associates were offered a severance package including salary and benefits continuation, Ross said.
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“The reductions in force were handled with as much humanity as possible. Maurices is a proven retailer with 92 years of history, but we are not immune to the pressure and challenges gripping so many industries today," she said. "Reducing our teams is painful, but ultimately this decision is about preserving the long-term sustainability of our organization.”
The news came as a surprise to Dan Meyer, who worked as a corporate tax technician at Maurices for just under two years. Meyer was working from home when he was notified by the head of his department via Zoom call that his position was being eliminated.
"There was no warning or any indications that this was going to happen. The reasoning stated is because sales were below the projections. ... The severance pay offered was lackluster at best," Meyer said. "It was a shock because I'm married with kids and I carry the benefits. All of the sudden to not have benefits and income coming in, it's a big change."
A month prior to being terminated, Meyer recalled a department meeting where the company announced its sales projections weren't met.
"I'm guessing this is their way of making up for that difference," Meyer said.
Maurices is a Duluth-based women's apparel retailer with more than 1,000 stores, including 49 in Minnesota and 50 in Wisconsin , according to its website. Maurices was previously owned by Ascena Retail Group, until it was purchased by OpCapita in 2019.
This story originally contained incorrect workforce numbers and a misleading quote. It was updated at 5:30 p.m. and 9 p.m. May 1. The News Tribune regrets the errors.
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