Macy's Laying Off 2,500 Workers

Macys Job Cuts
Paul Sakuma/AP
By ANNE D'INNOCENZIO

NEW YORK -- Macy's Inc. is cutting 2,500 jobs as part of a reorganization to sustain its profitability.

Macy's (M) shares rose 5.5 percent in after-hours trading Wednesday.

The announcement comes on the heels of a strong holiday shopping season for the department store chain, which also runs the higher-end Bloomingdale's chain.

Macy's said the moves will save it $100 million a year and forecast a 2014 profit above Wall Street forecasts.

Macy's has been a standout among its peers throughout the economic recovery and has reaped the benefits of its strategy of tailoring merchandise to local markets. But like other merchants, Macy's is grappling with a still cautious shopper.
It's also trying to respond to shoppers' shift toward buying and research on their PCs and mobile devices such as smartphones.

While Macy's will cut jobs, it is also planning to reassign or transfer some workers. It's also adding positions related to online shopping, a growing area for the company, and warehouses. That will leave its workforce level at about 175,000.

The Cincinnati-based company plans to close five stores and open eight others, leaving it with 844 stores nationwide once the changes are complete.

It's also shifting merchandising responsibilities for "soft home categories" like sheets and towels from the district level to the regional and national level. Macy's says that such goods change less often than clothing and accessories and are less subject to local tastes.

The moves come after a solid holiday shopping season for the chain. Revenue at stores opened at least a year, a key indicator of a retailer's health, rose 4.3 percent in November and December.

The company is optimistic about this year. It expects earnings per share of $4.40 to $4.50 in 2014, besting analysts' prediction of $4.36 a share, according to FactSet.

"Our company has significantly increased sales and profitability over the past four years, and we have created a culture of growth at Macy's Inc.," said Terry J. Lundgren, Macy's chairman, president and CEO in a statement.

"As the success of these strategies has unfolded," Lundgren said, "we have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers."



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120 Comments

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Brian Workman

I SHOP the Internet, and MACY's is NOT, on my to do list!

January 10 2014 at 3:27 PM Report abuse rate up rate down Reply
Brian Workman

So the Far Left Liberal Agenda has LIED Again about, unemployment being under 7%! There is always a large amount of unemployment increase, right after the Holidays, when the Temp. Employee's are let go for the year!

January 10 2014 at 3:24 PM Report abuse -1 rate up rate down Reply
1 reply to Brian Workman's comment
clquake

Reagan changed the way unemployment is calculated.

January 12 2014 at 7:25 AM Report abuse rate up rate down Reply
Tricia

So Macy blames it on the saavy shopper. Keep comparing prices people, Macy's will be outta business. Because lowering their prices is never going to happen.

January 10 2014 at 3:10 PM Report abuse rate up rate down Reply
shorthosep

Did Macy's ever consider that they didn' tlay-off 2500 employees they also laid-off 2500 CUSTOMERS. My friends wife works at Kohls and he told me that by the time his wife gets her check she makes about $1.00 an hour ------ the rest gets spent at Kohl's. So the spiral continues 2500 laid off at Macy's gets maybe another 100 people laid off at other places. Then next December Macy's can say we need to lay -off more because they didn't have enough shoppers.

January 10 2014 at 2:57 PM Report abuse rate up rate down Reply
imagefillers

layoffs based on greed is never a good thing

January 10 2014 at 2:16 PM Report abuse rate up rate down Reply
nightingale11

Sorry for typos. Arthritis is acting up

January 10 2014 at 2:07 PM Report abuse rate up rate down Reply
nightingale11

I never go to Macy's anymore. When I did there was nevr anyone there who could help. Ask about something and the mantra was always "If we have it, it's already ont he racks." Non-professional sales staff who didnt' kow the merchandise, didn't particularly care and were just there to ring up sales on registers sent me otu fo Macy's years ago. There are other places to shop where courtesy, knowledge of product and attention to the customer who pays the staff salary still exist. I shop there.

January 10 2014 at 2:07 PM Report abuse +1 rate up rate down Reply
1 reply to nightingale11's comment
Marcia

Don't know of any such places in the USA. No one there knows what customer service is.

January 10 2014 at 3:03 PM Report abuse rate up rate down Reply
dmcarroll99

I worked for Macy's a few years ago. i was treated horribly! Macy's does not care at all about their employees! This massive layoff speaks for itself about Macy's had such a great holiday that made them millions! Who do they think made that possible?

January 10 2014 at 2:02 PM Report abuse rate up rate down Reply
gotmullet88666

How can they put a price tag on some of the most nices and most helpful sales people any store can have. They are part of my feel good time I spend in Macy's. If service suffers because of these layoffs. Than they will get a decline which will cost the company money in the long run.

January 10 2014 at 1:04 PM Report abuse rate up rate down Reply
Tommy T

The real reason is so upper level Macy's executives can get bigger bonuses wothout affecting the bottom line. 100 million dollars = 10-12 executive bonuses or fewer.

January 10 2014 at 12:42 PM Report abuse +1 rate up rate down Reply