In response to sluggish sales, Macy’s, an American departmental store chain, has announced the reduction of its workforce by 3.5 per cent. The move comes as a part of its broader cost-cutting initiative and will impact about 2,350 positions across both corporate offices and stores.
Additionally, it has decided to close five of its malls as well. The stores to be closed early this year itself are situated in Arlington, Virginia; San Leandro, California; Lihue, Hawaii; Simi Valley, California; and Tallahassee, Florida.
In a statement to the media, Macy’s explained that the layoffs are a challenging but necessary step to streamline the company. This is part of its efforts to implement a new strategy to adapt to evolving consumer trends and market dynamics.
Affected employees were informed about the layoffs on Thursday, 18 January, 2024, and the last working day for those impacted will be 26 January 2024.
Macy’s is currently undergoing a transformation to make its 166-year-old department store more appealing to online shoppers and those seeking value. The company is revamping its private-label brands, establishing smaller shops outside of traditional malls, and relying on its beauty chain, Bluemercury, and high-end department store, Bloomingdale’s, to drive growth.
As part of its strategy, Macy’s plans to open up to 30 smaller stores in strip malls over the next two years, shifting away from its traditional focus on large mall stores. This move is aimed at capturing suburban consumers who prefer outdoor shopping centers for their shopping needs.
In addition to these changes, Macy’s is set to welcome a new leader, with Tony Spring, currently the CEO of Bloomingdale’s, taking over as CEO of Macy’s in early February as outgoing CEO Jeff Gennette retires.
Macy’s currently operates 723 locations across the country, as of the end of the most recently reported quarter.
