Macy's Announces Restructuring To Address Sales Impact From The Pandemic

Marco Green
June 29, 2020

Macy's Inc. announced a restructuring plan today that will see 3,900 corporate and management jobs slashed in an attempt to reduce costs as the effects of the CCP virus crisis continue to weigh on the business-an institution of USA retail.

The New York-based corporation, parent to the Macy's, Bloomingdales and Bluemercury brands, will eliminate approximately 3,900 corporate and management positions, or about 3% of its total workforce, it announced today.

Macy's closed all of its stores temporarily on March 18 because of the COVID-19 crisis and began reopening locations on May 4.

Macy's said it expects the layoffs to provide about $365 million in cost-savings in fiscal 2020, about $630 million on an annualized basis.

The company added that numerous employees it furloughed in March will be returning to work beginning July 5. Macy's said it would bring back most of its remaining furloughed employees in the first week of July.

"We know that we will be a smaller sized enterprise for the foreseeable potential, and our price tag base will carry on to replicate that going ahead", Gennette claimed. "Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company", Gennette continued. Those cuts would changed "as sales recover", the department store stated.

"COVID-19 has significantly impacted our business". In recent months, J.C. Penney, J.Crew, Pier 1, GNC, Neiman Marcus, and Stage Stores (SSI) have all filed for bankruptcy due to a significant decrease in sales.

"Retailers that were struggling before the pandemic hit will re-evaluate their operations and cut jobs out of necessity to stay afloat until the economy recovers".

The retailer is set to report first-quarter earnings on July 1, having already released preliminary results.

Other reports by Click Lancashire

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