Macy´s shares jump on re-organisational plans

Department stores operator´s stock gained over 7 percent in pre-market

trading right after the company announced it plans to lay off 2,500 employees and close some stores as part of a cost reduction plan.

Macy´s broke the news after a strong holiday season. The US store chain announced it is on its way to undertake an inside out reorganisation strategy that will close poor-performing stores and reduce its staff in 2,500 workers.

The retailer said it will combine its Midwest and North regions and reallocate within its regional divisions to streamline its operations.

Macy´s CEO Tim Lundgren released a statement on Jan. 8 that outlined the intended changes, including a list of the stores that would be closing this spring, after 10-11 week final sale.

Paul Swinland from Morningstar stressed recently that Macy’s is in a better financial position than years ago, before the crisis started.