Apr 26, 2016 08:29 AM EDT

Nordstrom Cuts About 400 Jobs; Figure 'Not A Catastrophe?'

Nordstrom will be eliminating about 400 jobs. Apparently, this is part of the company's efforts to keep up with an evolving consumer base.

Forbes reported that the department store chain will be cutting back on jobs to save about $60 million in annual costs. Nordstrom has announced, though, that the initial job cuts will be in currently open positions.

Moreover, employees who will be let go will get separation pay and benefits. The company has recently been focusing its resources on enterprise technology enhancements.

"We will never change our commitment to serving customers, but recognize how they want to be served has been changing at an increasingly rapid pace," Blake Nordstrom, co-president, Nordstrom, Inc., said in a statement. "Meeting our customers' expectations means we must continually evolve with them. We see opportunities to create a more efficient and agile organization that ensures we're best positioned to achieve our goals."

The recent job cuts came after Nordstrom announced last month that it had cut 130 technology-related positions. The company has more than 7,000 employees at its headquarters and 70,000 worldwide, including part-time positions.

Vice president of strategy at JohnRyan Chuck Palmer has said that "530 of 70,000 worldwide isn't a catastrophe." Palmer also noted that this may "refocus the culture" of Nordstrom and other retailers.

According to Fox 6 News, the Nordstrom job cut will be completed in July. It is also said to affect positions at its headquarters as well as regional offices.

CNBC added that Evercore has cut its price target on the department store chain from $50 to $40. Nordstrom's shares has dropped by 3 percent on Friday.

"We believe department stores have been over allocating capital and resources to support aggressive digital and off-price strategies for years, moving the industry away from its core competencies and advantages into new competitive situations that are unwinnable," Evercore said in a statement. "And in our view, Nordstrom is the most guilty of putting itself in a precarious situation by distancing itself from its long-standing, carefully cultivated identity (full-price, customer service, unique fashion curation) to pursue commoditizing e-commerce and off-price strategies."

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