Macy's announces 2,500 layoffs
NEW YORK — Macy's Inc. is cutting 2,500 jobs as part of a reorganization to sustain its profitability.
The announcement comes on the heels of a strong holiday season for the department store chain, which also runs the higher-end Bloomingdale's chain.
Macy's said the changes will save it $100 million per year and forecast a 2014 profit above Wall Street's forecasts. Macy's has been a standout throughout the economic recovery. But like other merchants, Macy's is grappling with still-cautious shoppers.
While Macy's will cut jobs, it is also planning to reassign or transfer some workers. It's also adding positions related to online shopping, a growing area for the company, and warehouses. That will leave its workforce level at roughly 175,000.
The Cincinnati-based company plans to close five stores and open eight others, leaving it with 844 nationwide once changes are complete.
It's also shifting merchandising responsibilities for “soft home categories” like sheets and towels from the district level to the regional and national level. Macy's says that such goods change less often than clothing and accessories and are less subject to local tastes.