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Macy’s to cut 2,500 jobs in major company reorganization that will save $100million per year

By
Associated Press Reporter
and Daily Mail Reporter


PUBLISHED:

22:51 GMT, 8 January 2014

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UPDATED:

22:52 GMT, 8 January 2014

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Macy’s Inc. is cutting 2,500 jobs as part of a reorganization to sustain its profitability.

The announcement comes on the heels of a strong holiday shopping season for the department store chain.

Macy’s
said Wednesday that it will reassign or transfer some workers and add
some positions, leaving its workforce level at a consistent 175,000.

Job losses: 2,500 employees will lose their jobs through store closings and consolidations

Job losses: 2,500 employees will lose their jobs through store closings and consolidations

The
Cincinnati-based company plans to close five stores and open eight
others, leaving it with 844 stores nationwide once the changes are
complete.

Macy’s says the moves will save it $100 million per year and forecast a 2014 profit above Wall Street’s forecasts.

It will cut specific positions in its Cincinnati corporate offices, as well as other administrative roles throughout the country.
Macy’s will reduce its district count to 60 from 69, the biggest shift of which is in its Midwest and North regions.

The two will be consolidated to create a new North Central region.

The retailer’s CEO Terry Lundgren said of the news: ‘We began five years ago with a set of business strategies that were largely untested by a national retailer of our size and scope. As the success of these strategies has unfolded, we have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers.’

The news sent its shares up 5.5 percent in after-hours trading.

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