Thursday, 02 July, 2020

Macy's to slash 3900 company positions and furlough far more store personnel

COVID-19 Response: Macy's Cutting Thousands of Jobs Macy's Will Lay Off Another 3900 Corporate Workers, Despite "Better Than Expected" Sales
Ginger Lawrence | 29 June, 2020, 16:54

Some 775 Macy's, Bloomingdale's, and Bluemercury stores remained closed from March 18 to May 4, with nearly 7 weeks of inactivity followed by a gradual reopening process.

Aside from that, in the wake of a withering outlook in demands, Macy's Inc. had also been quoted saying at its statement that the departmental store chain had made a decision to reduce staffs at its stores, customer support networks alongside supply chains. The company has undergone a phased reopening as local and state guidelines allow.

Macy's Inc. announced a restructuring plan today that will see 3,900 corporate and management jobs slashed in an attempt to reduce costs as the effects of the CCP virus crisis continue to weigh on the business-an institution of US retail. Macy's said it would bring back most of its remaining furloughed employees in the first week of July.

The department store chain, which had about 123,000 employees at the end of January, said it expects to save about $365 million in fiscal 2020 and about $630 million every year as a result of the layoffs. The company previously announced cost-cutting measures that were created to save an estimated $1.5 billion by the end of 2022.

When stores reopened, CEO and spin master Jeff Gennette said performance was better than anticipated-but they haven't returned to pre-COVID levels.

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"We know that we will be a smaller company for the foreseeable future, and our expense base will continue to reflect that progressing".

The COVID-19 pandemic has led to a number of bankruptcy filings in the retail sector. "Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company".

Macy's stock was trading at $6.44 per share at 11:39 a.m. EDT, down $0.34 from 4.94%.

"Macy's is doing what it can to quickly cut costs - which, in this case, means cutting corporate jobs", Saunders said.