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article imageMacy's closing 125 stores, cutting 2,000 jobs nationwide

By Karen Graham     Feb 4, 2020 in Business
Macy's announced on Tuesday it is closing 125 of its least productive stores and cutting 2,000 corporate jobs over the next three years as the struggling department store tries to reinvent itself in the age of online shopping.
In the announcement on Tuesday, the retailer said it would be eliminating about 9 percent of its corporate and support positions over the next three years, according to the Detroit Free Press. The store plans on consolidating its leadership positions in New York.
This comes about after the announcement in January the retailer would be closing 28 stores nationwide.
Macy's confirmed to CNBC that it will be closing its tech offices in San Francisco, which are located at 680 Folsom, and some of the 1,000 workers will be able to transfer. Operations in these offices will be moving to New York and Atlanta, Georgia. Macy's is also closing its headquarters in downtown Cincinnati, where it has 500 employees.
According to Business Insider, a notice was sent to the state of California confirming that 831 jobs will be impacted. These range from senior management positions to analysts and engineers. Macy's also has about 200 contract workers at its San Francisco office who will be impacted.
“We believe these changes will eliminate any duplication of efforts, bringing these teams closer to our business teams and strategy,” the Macy's spokeswoman said.
Macy s department store in Cincinnati at twilight  May 24  2005.
Macy's department store in Cincinnati at twilight, May 24, 2005.
New business plan
In an effort to reinvent its business plan, Macy's is testing a new store format that's located at a strip center, instead of a mall. Called Market by Macy’s, they will be smaller than average Macy’s stores and include curated merchandise, food and community events calendars, according to the company.
The newly announced job cuts and store closures come as Macy's sales continued to slide during the crucial holiday season, and ahead of Macy’s holding an investor meeting in New York on Wednesday morning.
"We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams,'' Macy's chairman and CEO Jeff Gennette said in a statement.
Macy's shares were up about 1.5 percent Tuesday afternoon, having fallen about 35 percent over the past 12 months. Macy’s has a market cap of about $5.2 billion.
More about Macy's, poor performers, reinventing itself, Online shopping
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