The head of American Eagle’s Quiet Platforms has stepped down as the apparel retailer prepares to slash expenses after the logistics unit failed to meet expectations.
Quiet Platforms President and American Eagle Chief Supply Chain Officer Shekar Natarajan will exit effective immediately "due to the changes within the Quiet Platforms organization," according to a statement from the retailer sent to Supply Chain Dive.
Quiet Platforms Chief Operating Officer Brent Beabout also left the company in March, the retailer confirmed.
Niall Murphy, who became the logistics unit’s chief business officer last year, will take over from Natarajan and lead Quiet’s operations on an interim basis, the retailer said.
The C-suite shakeup comes as American Eagle acknowledges that its logistics unit has grown at a sluggish pace. In a Q4 earnings call, American Eagle Chief Operating Officer Michael Rempell said that while Quiet Platforms grew nearly 40%, it did so at margins “below what we expected.”
The retailer will slash expenses within its logistics unit to boost profitability going forward, according to a statement from AEO Inc.
“While Quiet’s third party business has grown nicely, it has not achieved the plans we envisioned,” the statement said.
American Eagle has previously credited Quiet Platforms for much of the retailer’s own supply chain transformation. Quiet helped American Eagle boost delivery times, with company executives saying last fall that 75% of online orders reached customers within three days.
The retailer said in its statement that it still believes it can build up Quiet Platforms as a profitable enterprise.
“We believe Quiet will continue to deliver results for AEO, and over time has the potential to be a meaningful and profitable third party logistics provider,” the statement said. “With the support of our experienced leadership team, we remain focused on driving the business forward.”