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.”
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%.