Macy’s to cut 2,300 jobs, prepares for store closures
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US department store giant Macy’s is preparing to lay off around 2,300 employees, accounting for 3.5 percent of its workforce, as part of plans to carry out a series of store closures.
The retailer disclosed the move in a statement to WWD, for which a spokesperson said: “The reduction impacted all functions across nameplates, with the majority being corporate Macy’s Inc. jobs.”
The individual added: “As it relates to stores, we continue to reposition our store portfolio and evaluate the right mix of on- and off-mall locations.”
While as mentioned the reductions are largely centred around Macy’s corporate office, the company is further planning to close five of its department stores and two furniture galleries.
The impacted locations include full-line stores in Arlington, Virginia; San Leandro and Simi Valley in California ; Lihue in Hawaii; and Tallahassee, Florida.
5 stores expected to close
The news comes at a time when Macy’s is facing a particularly dynamic environment. Earlier last year, the company made it clear that it was putting an emphasis on small-format store locations, revealing plans to expand the concept by 30 new spaces throughout 2024 due to their efficiency and ability to deliver on “sustainable, profitable sales growth”.
In December, however, speculation surrounding a possible buyout offer from Arkhouse and Brigade began circulating, with a reported 5.8 billion dollar deal that would value the retailer at 21 dollars per share
At the time, the investment duo were said to have believed that Macy’s was undervalued in the public markets, despite the department store struggling to break out of a sales slump over the past year.
While the company has put in efforts to turnaround its performance, comparable sales declined 7 percent in the third quarter of 2023 amid falling consumer demand.
Commenting on the results, Macy’s CEO and chair Jeff Gennette said: "Looking forward we have strong continuity with Tony Spring transitioning to CEO in February and I am confident he and our leadership team will guide Macy’s, Inc. to sustainable long-term profitable sales growth in the future.”