Macy’s to cut thousands of jobs, close stores
After disappointing holiday sales, the retailer issued plans to cut costs. In a jargon-rich statement, its chief said the changes would cause ‘short-term pain.’
Citing declining profits, the retailer will close 40 stores by year-end, with up to 4,800 employees’ positions cut.
About 3,000 of those affected employees come from the 40 stores the retailer is closing, but Macy’s says roughly half are “expected to be placed in other positions.”
RELATED: Are you prepared for a crisis? Build a top-notch incident-response plan with this free download.
The news comes after disappointing holiday sales numbers. The Wall Street Journal reported:
Sales at existing stores in November and December fell 4.7%, and the company said it expects the decline to continue this month. It would be the sharpest holiday period decline since 2008. The company had been expecting fourth quarter sales, which also includes January, to decline between 2% and 3%.
Become a Ragan Insider member to read this article and all other archived content.
Sign up today
Already a member? Log in here.
Learn more about Ragan Insider.
