Macy’s cuts 2,350 jobs, closes five stores
Department store Macy’s to lay off over 2,000 employees
In a move that will affect approximately 3.5% of its workforce, Macy’s has announced plans to lay off around 2,350 employees starting next week. The news was revealed in a memo obtained by the Wall Street Journal.
Store closures and ongoing challenges
The memo also disclosed the closure of several Macy’s stores, including locations in Arlington, Virginia; San Leandro, California; Simi Valley, California; Lihue, Hawaii; and Tallahassee, Florida. This comes as part of the company’s strategy to optimize its digital and physical store presence, with a plan to eliminate a total of 100 branches.
Despite recent progress, Macy’s acknowledged the ongoing pressure it faces. The retailer’s workforce had been gradually recovering from the impact of the 2020 pandemic, but it still falls short of pre-pandemic levels by approximately 30,000 employees.
Leadership changes and stock decline
Macy’s President Jeff Gennette will be stepping down next month, making way for Tony Spring to take over. Gennette has been at the helm since 2017, during which time the company’s stock experienced a significant decline, dropping 75% from its peak of $73 per share to less than $18.
Remaining stores and future prospects
Despite the challenges, Macy’s still operates over 550 stores, including its subsidiary Bloomingdale’s. The retailer has also made adjustments to its holiday traditions, such as retiring the Great Tree Lighting event at its downtown Boston store. As the company navigates these changes, it has yet to release its holiday season sales figures.
What challenges is Macy’s currently facing that prompted the resignation of its President and the decline in its stock value
Department store Macy’s has announced plans to lay off over 2,000 employees, which will affect approximately 3.5% of its workforce. The news of the layoffs was revealed in a memo obtained by the Wall Street Journal.
In addition to the layoffs, Macy’s also disclosed the closure of several of its stores in different locations across the country. This includes stores in Arlington, Virginia; San Leandro and Simi Valley, California; Lihue, Hawaii; and Tallahassee, Florida. These closures are part of Macy’s strategy to optimize its digital and physical store presence, with a plan to eventually eliminate a total of 100 branches.
Despite recent progress, Macy’s acknowledges the ongoing challenges it faces. The company’s workforce had been slowly recovering from the impact of the 2020 pandemic, but it is still short of pre-pandemic levels by approximately 30,000 employees.
In addition to the layoffs and store closures, Macy’s President Jeff Gennette will be stepping down next month. Tony Spring will be taking over as the new president. Gennette has been leading the company since 2017, and during his tenure, the company’s stock experienced a significant decline. Its stock dropped 75% from its peak of $73 per share to less than $18.
However, despite these setbacks, Macy’s still operates over 550 stores, including its subsidiary Bloomingdale’s. The company has also made adjustments to its holiday traditions, such as retiring the Great Tree Lighting event at its downtown Boston store. As the company navigates these changes, it has yet to release its holiday season sales figures.
In conclusion, Macy’s is facing ongoing challenges that have resulted in the decision to lay off over 2,000 employees. The company is also implementing store closures as part of its strategy to optimize its presence in both digital and physical retail. Despite these changes, Macy’s continues to operate a significant number of stores and is adapting its holiday traditions. The future prospects of the company remain uncertain, with the impact of these changes yet to be seen.
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