Lowe’s CEO publicly addresses 600 layoffs for first time, then turns to AI, profits
Lowe’s continues to navigate a volatile home improvement market, its CEO acknowledged Wednesday, just weeks after cutting over 600 jobs.
Those layoffs impacted Lowe’s headquarters in Mooresville and its uptown Charlotte tech center more than any other place, a move that triggered online backlash from a number of employees. During a fourth-quarter earnings call with analysts, CEO Marvin Ellison referenced the layoffs in passing.
Instead, he emphasized that fourth-quarter net sales rose to $20.6 billion, and that all hourly employees and assistant store managers are receiving bonuses.
Lowe’s annual net earnings dropped to $6.65 billion in 2025 compared to $6.95 billion the previous year — a decrease of 4%.
Consumer confidence is “subdued,” putting pressure on big ticket and discretionary DIY projects, Ellison said. “Consumers are reluctant to make significant investments in their homes.”
To counter this, Ellison Lowe’s must stay focused on “perpetual productivity improvement,” which is why Lowe’s decided to eliminate 600 corporate and support roles. The company is one of the Charlotte region’s biggest employers.
“This workforce reduction will help us create greater financial agility while continuing to invest in customer facing areas of the company,” Ellison said. “We will continue to manage what is within our control.”
About Lowe’s employee bonuses
Ellison also announced that Lowe’s is giving $125 million in discretionary bonuses to all hourly store and distribution center employees.
Store employees companywide will receive one-time bonuses of $150 to $700 for full- and part-time workers, and $5,000 for assistant store managers, said Joe McFarland, Lowe’s executive vice president of stores.
Last year, Lowe’s also gave $80 million in discretionary bonuses store managers and assistant managers.
Mass layoffs at Lowe’s
On Feb. 13, Lowe’s confirmed the mass layoff of 1% of its workforce. That included 178 jobs at corporate headquarters in Mooresville and another 49 positions at Lowe’s Technology Hub in South End in Charlotte, records filed with the state show.
Layoffs begin April 19 and will be completed by May 1.
Employees expressed their distress about the mass layoffs on social media platforms such as Reddit. One person described the event as “a bloodbath” and others shared that they were heartbroken.
Lowe’s employs about 300,000 people. As of Jan. 30, Lowe’s operates 1,759 stores.
Lowe’s has refused to say how many employees work at its corporate office. In 2024, Lowe’s said it had about 11,000 employees in the Charlotte region, including 5,000 corporate workers when the company laid off other corporate workers.
How AI is impacting jobs at Lowe’s
Lowe’s is embracing AI across its different departments to improve efficiency and productivity. McFarland detailed how AI is being used to support sales teams through AI-enabled initiatives.
One example is the Pro Companion that helps sales employees quickly learn about products, which leads to more effective customer interactions. Another initiative is the Pro Extended aisle, which helps employees search suppliers catalogs quickly.
“We’ve just introduced a new feature that allows us to stage job site delivery, so pros can get what they need immediately and then deliver the rest of the order at a later date based on their schedule,” McFarland said.
Other operational enhancements include new stocking protocols and a shelf replenishment initiative, which uses real-time data and AI technology to send stores a prioritized list of critical items to restock.
“This approach means more associates are available to help our pro customers when they arrive early to shop before heading to their job sites,” McFarland said.
In November, Ellison said he viewed technology as a way to increase revenue and efficiency, not to replace jobs.
He had previously warned young workers looking for corporate jobs to “stay as close to the cash register as you can. ... Technology will supplement some of the corporate jobs that people aspire to,” Ellison said during a Business Roundtable’s CEO Workforce Forum in June.
Lowe’s uses AI to boost customer service
The Mylow virtual assistant on the Lowe’s app and website handles 1 million questions a month, helping workers with product knowledge and online conversion rates, Ellison said Wednesday. The assistant now supports Spanish, addressing language barriers in specific geographic areas, he told analysts following the earnings call.
“We’ve seen dramatic improvements in customer service,” he said.
Ellison said there are 50 examples of how AI is freeing up store employees from being task driven to help drive efficiency and revenue. “It’s something as a large company that we understand is critically important to our current state and our future,” Ellison said, “and we’re embracing it.”
Lowe’s revenue rises despite uncertain market
Lowe’s reported $20.6 billion total sales in the fourth quarter ending Jan. 30, 2026, up 10.7% from $18.6 billion in the previous fourth quarter. Comparable sales rose 1.2% driven by pro, online and home services sales, as well as strong holiday performance, according to Lowe’s.
Online sales delivered 10.5% growth in the fourth quarter, and new sales records were set on Black Friday and Cyber Monday, Ellison said.
Lowe’s annual net sales of $86.3 billion compared to $83.7 billion in 2024, a 3.1% increase.
Lowe’s acquisitions focus on pro customers
Last year, Lowe’s made two major acquisitions aimed at boosting the company’s pro sales amid slow DIY demand.
In October, Lowe’s acquired California-based Foundation Building Materials for $8.8 billion to expand the chain’s reach among its professional customers in the U.S. and Canada. Lowe’s also detailed its plans for further expansion with a wave of new stores debuting over the next few years.
In June, Lowe’s also acquired Artisan Design Group for over $1.3 billion to expand its pro service with a new distribution channel.
ADG is a design, distribution and installation service provider for interior surface finishes, including flooring, cabinets and countertops for home builders and property managers.
”With the recent acquisitions,” Ellison said, “we are well positioned to participate in the expected recovery and housing as we start the year.”
This story was originally published February 25, 2026 at 1:28 PM with the headline "Lowe’s CEO publicly addresses 600 layoffs for first time, then turns to AI, profits."
