The Department Store is Set to Cut 3.5 Percent of its Total Workforce
Macy’s is set to cut approximately 2,350 jobs, representing 3.5 percent of its total workforce. These layoffs come amidst efforts to adapt to the ever-changing consumer and marketplace, according to a company spokesperson.
The restructuring also involves the closure of five Macy’s full-line locations in Arlington, Va.; San Leandro and Simi Valley in California; Lihue, Hawaii; and Tallahassee, Fla. As part of the broader strategy, Macy’s is assessing the optimal mix of on- and off-mall locations. The company spokesperson emphasized the decision to reduce the workforce aims to make Macy’s a more streamlined organization in preparation for a new consumer-focused strategy.
This move follows the $5.8 billion bid by Arkhouse Management and Brigade Capital Management to take Macy’s private, adding pressure on the company. Macy’s incoming CEO, Tony Spring, is focused on cutting expenses on promotions to boost margins, particularly after the inventory glut experienced in 2022.
The layoffs, accounting for 3.5 percent of the retailer’s total workforce, impact various functions across nameplates, with the majority occurring at the corporate level. Macy’s is also closing two furniture galleries as part of this round of employee reductions.
These developments coincide with Macy’s ongoing efforts to reposition its store portfolio and evaluate the right mix of on- and off-mall locations. The company had previously disclosed plans to close 125 department stores, with 80 already closed as of fall 2023. The recent announcement underscores the company’s commitment to becoming a more agile and consumer-centric entity in the face of industry changes and investor pressures.
