F.W.

WOOLWORTH
COMPANY
A New Image and a New Workforce
Allegations
We, The Venator Group, has been accused with
following a practice of age discrimination against our
employees.
The USEEOC’s claims:
We laid off 400 employees based on their age
Replacements were mostly teenagers
We did not allow these employees to apply again for the
new part-time positions
Context
When the CEO, Roger N Farah joined, the company
was in dire straits
A debt of over $1.2 billion
The company was insolvent.
It was on the verge of bankruptcy which meant the
thousands of employees of this organization would have
lost their jobs.
Handicaps
The current handicaps of the organization
Our flagship dime stores were bleeding cash.
The company had antiquated inventory systems.
Our stores were not equipped to tally daily sales.
A major problem was we were present in outdated
formats, hurting profits and thus furthering our inability
to generate cash for a turnaround.
Options
1. Declare bankruptcy and liquidate our assets
2. Try to improve the system and the efficiency to
achieve turnaround within the existing structure
3. Go for complete restructuring and do whatever is
necessary to make the company solvent again.
Option Option Option
1 2 3
Given the
●
Take whatever steps
●

It would
●
enormous size and necessary, even of
have complexity of the they are harsh, for
problem at hand, the revival of the
involved it would’ve delayed company and in
laying off the but probably not turn save the
avoided majority of the
entire staff bankruptcy. employees.
Option 3 needed us to increase revenue and cut costs
which involved
Restructured 41 divisions to 21 store formats.
Sold off our headquarters which generated the much
needed cash.
Entered into youth-targeted markets of sports.
Closed down 400 stores which were loss making and
laid off employees.
Reasons why these employees were laid off
o We were reducing the number of stores, hence the
employees.
o Transform wage bill structure from full time to part time
to reduce costs.
o We laid off employees whose wages, and not ages, were
high to reduce costs.
oThe new sports stores, which were primarily
targeted at a younger consumer required a youthful
image.
o We could’ve laid off employees who were less
technology savvy and whose productivity was low
versus their pay
Conclusion
We have empathy with the employees who were laid
off. But for the greater good of the remaining
employees, it was a necessary action. We wish we were
in better circumstances and had a less painful
alternative.
THANK YOU
Presented By – Group 2
Aditya Somani
Akash Gaurav
Birma Ram
Kshitij Sharma
Shrey Kumar Singh