Macy’s (Cincinnati) announced that it will be undergoing another round of cost-cutting measures, which includes cutting approximately 6200 jobs, the company reported in a statement yesterday. These job cuts are in addition to the 3900 jobs that will be lost as the retailer closes 63 stores this spring and two in mid-2017; other locations have been sold, are to be sold, or are being leased back.
The additional cuts are a part of the retailer’s restructuring plans that come on the heels of news that the retailer saw comparable sales decline 2.1 percent from last year during the holiday shopping season.
The restructuring plans, including the closing of about 100 additional stores over the next few years, are part of an effort to streamline operations and reduce expenses so that the retailer can, instead, invest in its digital operations, said Macy's CEO Terry Lundgren.
“These are never easy decisions, and we are committed to treating associates affected by these closings with respect and transparency," said Lundgren. The company says associates displaced by store closings may be offered positions in nearby stores, where possible, while others will be offered severance benefits.
Lundgren will be stepping down as ceo this year; current president Jeff Gennette has been named as his replacement.