Hudson's Bay says its restructuring will allow it to \Hudson's Bay says its restructuring will allow it to "better compete during these challenging economic times."

The Hudson's Bay Company says its new restructuring plan will include a five per cent reduction in its full-time workforce, which means about 1,000 job cuts in Canada.

The giant retailer's new U.S. owner said Wednesday that the plan will result in savings of $150 million in 2009.

Earlier this month, the company announced it would invest $70 million in its operations and created a Shared Services Group designed to provide finance, information technology, supply chain and logistics, and central operations for all its stores.

"We believe this new structure will allow us to better compete during these challenging economic times and ensure our long term success," Jeff Sherman, CEO of Hudson's Bay Trading Co., said in a statement. "These changes allow us to be more responsive to customer needs and expectations while at the same time aggressively implement our business strategy in order to grow sales and earnings."

The Hudson's Bay Company operates 600 retail outlets and employs about 60,000 full and part-time workers in Canada at The Bay, Zellers, Home Outfitters and Fields stores.

The company's U.S. operations, owned by an affiliate named Hudson's Bay Trading, include Lord & Taylor, an upscale specialty retailer with 48 stores in nine states, and Creative Design Studios.