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Macy’s to slash over 2,300 corporate and store roles

By Nithya Bose in Business News, posted January 19, 2024

Macy's has announced more than 2,300 layoffs and the closure of five of its stores in malls.

Company spokesman Chris Gram said the reductions affect roughly 3.5 percent of its corporate office and stores workforce.

The department store wants to cut costs and revitalize slowing sales.

Macy’s said: “As we prepare to deploy a new strategy to meet the needs of an everchanging consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company.”

The firm notified staff that the last day of those affected will be Friday, January 26.

The store closures are planned for early 2024.

It will affect stores in Arlington, Virginia; San Leandro, California; Lihue, Hawaii; Simi Valley, California; and Tallahassee, Florida.

Macy's, founded 166 years ago, adapts to the evolving retail landscape dominated by online shopping and value-seeking consumers.

It also faces tough competition from Amazon, Shein, Target, and T.J. Maxx.

The company is overhauling its private-label brands and setting smaller shops outside of malls.

It will also use its beauty chain, Bluemercury, and higher-end department store, Bloomingdale’s, to drive growth.

Macy's aims to open up to 30 smaller stores in strip malls over the next two years, a departure from its traditional focus on giant mall stores.

The company is targeting shoppers in suburban areas who prefer outdoor shopping centers for convenience in obtaining groceries or fashion items.

Macy's, encompassing its namesake brand, Bloomingdale's, and Bluemercury, will also experience a change in leadership.

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New CEO appointed

Tony Spring, currently the CEO of Bloomingdale's, will take over as Macy's CEO in early February following the retirement of outgoing CEO Jeff Gennette.

The restructuring comes amid challenging sales and stock performance for Macy's.

The department store chain, which currently has 723 locations across the country, has seen a reduction in its footprint in recent years.

Approximately four years ago, Macy's announced the closure of 125 stores and the termination of 2,000 corporate jobs.

The company is once again reassessing its store count.

Mr Gennette said in March 2023 that Macy's is evaluating the optimal number and mix of on- and off-mall locations to adapt to the evolving retail environment.

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