As U.S. retail companies implement widespread layoffs to reduce expenses, major players such as Starbucks, Kohl’s and Forever 21 are following suit. The rising instability in consumer-sector employment raises pressing questions about long-term labor market trends and the strategies workers must adopt to remain resilient.
Layoff wave hits Kohl’s, Forever 21, Chevron and others
Retail companies often lay off staff as a strategy to reduce costs and boost profitability. This typically occurs when businesses face rising operational expenses or declining sales, prompting them to streamline and downsize operations. In other cases, layoffs may be part of a strategic shift, where companies focus on a core area with long-term growth potential. While businesses routinely restructure, such moves can often indicate trouble.
Kohl’s was one of the first major retailers this year to announce significant layoffs and store closures, cutting 10% of its corporate workforce and planning to shut down 27 underperforming stores by April. According to the company, more than half of the layoffs were from unfilled positions, while the rest involved current employees. Affected locations include Arizona and California, with 10 stores closing, as well as Texas and Ohio.
Over 15,000 U.S. stores could close in 2025—double last year’s total
The retail sector is bracing for a wave of closures in the months ahead, with Coresight forecasting that 15,000 stores will shut down in 2025—twice the number seen last year. Joann Inc. revealed on Feb. 12 that it would be closing 500 of its 800 stores nationwide, but followed that announcement up just a couple weeks later announcing all stores would close. Meanwhile, Chevron is preparing for a large-scale global downsizing, aiming to cut 15% to 20% of its workforce over the next two years—a move that could eliminate around 8,000 jobs.
Estée Lauder has now joined the growing list, announcing that it will shed 5,800 to 7,000 jobs over the next two years as part of a similar restructuring effort. Meanwhile, Starbucks, which recently took steps to stave off a large-scale frontline staff strike, has instead turned its focus to corporate layoffs, with 1,100 employees set to be let go. Forever 21 is the most recent company to announce layoffs, just this week confirming it will close its Los Angeles headquarters, with hundreds of job cuts expected to begin by the end of April.
Inflation and online discounts are hammering physical stores, with consumers flocking to fast retail platforms like Temu and Amazon Haul for easier shopping and endless sales. This shift, which has been evolving ever since post-COVID reopenings, is putting immense pressure on traditional retailers that rely on foot traffic. The rise of food delivery and self-service technology means even major food chains can struggle to keep everyone on board in the modern age.
Despite concerns over the obvious decline of physical retail, brick-and-mortar stores continue to play a crucial role for certain brands looking to engage with customers beyond the digital sphere. These spaces offer not just products, but a sense of connection, trust and immediate service.
“2025 is shaping up to be the worst year for store closures in recent history,” Coresight Research CEO Deborah Weinswig told USA TODAY. “We believe there is a significant place for physical retail, but it needs to adapt to today’s consumer. They don’t want to have any friction. They don’t want to wait in lines, they don’t want to have challenges with returns, they don’t want it to be hard to find product information,” she added.
The battle to keep physical stores alive is driving a complete reinvention of their design and purpose to attract modern shoppers. These spaces are becoming increasingly experience-driven, with companies striving to create unique in-person engagements that differentiate them from online shopping. As a result, employees now have the opportunity to explore new in-person roles that emphasize marketing and customer service qualities.
Moving up or moving on: Smart career moves for retail workers and independent retailers
For those facing job uncertainty in the ever-changing retail industry, finding a starting point may feel overwhelming. Yet, the first step is understanding how retail businesses around you are evolving. Are stores closing rapidly, or are employees being integrated with technology to enhance efficiency? If your position remains secure for now, take the opportunity to familiarize yourself with emerging tools that could reshape your role. By staying informed and adaptable, you can carve out a unique place for yourself.
For others, now might be the time to make a bold move into industries where retail experience can thrive. Fields like e-commerce operations, merchandising strategy or brand consulting offer strong career paths as traditional retail shifts. Stepping into management or strategic roles can also provide stability, as leadership positions are famously less vulnerable to automation and cutbacks.
The retail apocalypse hasn’t fully arrived, but the industry is pushing hard with technological progression. Store closures and automation are reshaping the job market, prompting workers to reconsider the stability of their roles. Some are moving up into management, taking on positions that offer more stability and influence. Others are shifting into logistics and fulfillment, where e-commerce growth has created an urgent need for skilled employees.
Today’s customers expect engagement, not just a storefront. Independent retailers who have no choice but to stay on location can harness social media and online marketing to draw in new shoppers and keep their business relevant. By maintaining a promotional focus, you reinforce your store’s value, showing consumers you’re not just surviving the digital shift, you’re thriving with it. Flexibility always wins, and knowing where your skills translate keeps new career paths within reach if change is inevitable.
Photo by BreizhAtao/Shutterstock
