A few major organizations are starting the year with rounds of layoffs.
On Wednesday, Macy’s announced it was closing 68 of its stores and cutting
more than 10,000 jobs.
In its press release, the retail chain’s chief executive, Terry J. Lundgren, said the cuts
aren’t the only way Macy’s will try to bolster its shrinking market share.
The company will also tap into customer data to better cater to their
Over the past year, we have been focused and disciplined about making
strategic decisions to position us to gain market share and return to
growth over time. While we are pleased with the strong performance of our
highly developed online business, as well as the progress we have made on
selling and visual presentation programs and expense reduction initiatives
in 2016, we continue to experience declining traffic in our stores where
the majority of our business is still transacted. Given the overall trends
challenging us and the broader retail industry, and the time needed to
execute new strategies, we expect our 2017 change in comparable sales to be
relatively consistent with our November/December sales trend. Our
omnichannel strategies continue to evolve based on the changes in our
customers' shopping behaviors, including a focus on buy online, pickup in
store and mobile-enabled shopping. In addition, we have invested in and
enlarged our customer data and analytics team, which will help drive our
new marketing strategies for 2017. Whether it is improving corporate
agility, enhancing our customer engagement strategies, or continuing to
capitalize on the potential value of our real estate assets, we remain
focused on the actions that will ultimately improve our financial results
and provide the greatest return for our shareholders.
CNN Money reported:
The announcement was issued alongside an unfavorable earnings report,
showing comparable store sales dipped 2.1% last quarter. The news caused
its stock to plunge nearly 10% during after-hours trading Wednesday.
13 musts for breaking bad news to employees.]
The announcement is part of Macy’s previously revealed plan to boost
The chain announced in August 2016 that it planned to close a total of 100
stores (15 percent of its locations). Roughly 3,900 employees are expected
to lose their jobs in the closures, and Macy’s announced additional 6,200
jobs will be cut as it slims down its management teams.
Macy’s isn’t the only retail brand facing hard times.
A company that’s been hit even harder by online competition and slowing
sales is Sears.
The chain will close 150 stores
early this year.
The move includes 108 Kmart stores and 42 Sears locations, representing 10
percent of its total locations.
In 2011, Sears had 3,500 stores nationwide. Today, that number is under
Medium announces closures, layoffs to focus on “new model”
Layoffs are also coming for more than just retail employees.
Medium, the content publishing platform that Twitter founders Evan Williams
and Biz Stone launched in 2012, will lay off 50 people—one third of its
The platform is closing offices in New York and Washington, D.C., but it
will keep the majority of its engineering and product teams.
Medium most recently made headlines in October when the site’s leaders
announced that it would offer native ad campaigns and sponsored posts.
Williams backed off that announcement, saying
in a Medium post, "Upon further reflection, it’s clear that the broken system is ad-driven
media on the internet. It simply doesn’t serve people.”
So, we are shifting our resources and attention to defining a new model for
writers and creators to be rewarded, based on the value they’re creating
for people. And toward building a transformational product for curious
humans who want to get smarter about the world every day.
Williams said that it’s “too soon” to provide details on what Medium’s new
approach will be.