Department store chain Macy's will cut 2,350 jobs and close five stores as it seeks to streamline its operations, a company spokesperson told Reuters on Thursday.
The layoffs represent 3.5% of Macy's total workforce. As of January 2023, the company operated 722 stores and employed 94,570 full-time and part-time employees, excluding seasonal employees.
Reuters reported in December that the layoffs come after an investor group consisting of Arkhouse Management and Brigade Capital pressed Macy's to take it private with a $5.8 billion offer. It was received and carried out.
Macy's incoming CEO Tony Spring is also focused on cutting promotional costs to boost profit margins as the company recovers from excess inventory in 2022. CEO Jeff Gennette will step down next month.
A Macy's spokesperson said the job cuts are part of the company's plan to “develop new strategies to meet the ever-changing needs of consumers and the marketplace.”
The company is evaluating “the right mix of in-mall and off-mall stores” and plans to close five of its full-line stores this year, the spokesperson added.
First, there was a reduction in personnel. The Wall Street Journal reportedThe newspaper cited a memo sent to employees saying the layoffs would take place on January 26.
In November, the company's quarterly profit beat analysts' expectations on lower inventories and strong demand for beauty products.
