Macy's Unveils Streamlined Strategy With Massive Lay Offs And Store Closures: Report

Macy’s Inc M reportedly informed its employees about the decision to reduce 13% of its corporate workforce.

This action aligns with the company’s preparation to introduce a new strategy, which the incoming chief executive will oversee, The New York Times reported, citing memos seen by the media house. 

The reductions account for approximately 2,350 positions, constituting around 3.5% of the company’s total workforce, encompassing Bloomingdale’s and Bluemercury subsidiaries, The New York Times added.

Additionally, the company announced the closure of five Macy’s stores out of its 560 locations.

The decisions outlined in the memos were based on consumer research aimed at enhancing the retailer’s competitiveness by optimizing its cost structure and expediting decision-making processes, the report read.

“As we prepare to deploy a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company,” a Macy’s spokesman said in an email statement to The New York Times.

According to a memo to employees, the company announced plans to “offshore certain areas of the business,” without specifying further details, the report added.

Meanwhile, Tony Spring is set to assume the role of Macy’s chief executive next month, succeeding Jeff Gennette, who has been in the position since 2017 and is retiring. 

Spring, previously in charge of Bloomingdale’s, was appointed as CEO-elect in March. Alongside Adrian Mitchell, Macy’s CFO and COO, Spring has conducted research as part of the company’s efforts to adapt and enhance its operations, the report added.

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Price Action: M shares are trading higher by 0.39% to $18.00 premarket on the last check Friday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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