Macy's to Cut Nearly 4,000 Jobs in Corporate Restructuring
Macy's announced yesterday that it is cutting 3,900 corporate jobs — 3 percent of its total workforce — to reduce costs as it struggles with the effects of the coronavirus pandemic. The cuts represent about a fourth of Macy’s corporate workforce. The department store chain said it expects to save about $365 million through the layoffs in fiscal 2020. It said it will save roughly $630 million on an annualized basis. Macy’s has reduced staffing across its stores, supply chain and customer support network, which it will adjust as sales rebound.
Total Retail's Take: The long-term impact of the coronavirus pandemic, coupled with pre-existing challenges for traditional brick-and-mortar retailers, particularly department store chains, has left Macy's in a precarious position. Cost-saving moves such as job cuts and store closures are likely to become the norm in the near future for Macy's, as CEO Jeff Gennette announced in late April that the retailer will emerge from the pandemic a smaller company. While Macy's has slowly begun to reopen its stores, the sales generated are not expected to offset losses sustained during the pandemic. Gennnette and Macy's is taking the prudent, albeit painful, step of downsizing the organization in an attempt to return to profitability.