Macy’s, the renowned department store chain, has announced a significant workforce reduction, laying off over 2,300 employees and closing five stores. The company, which currently employs approximately 94,500 individuals and operates 507 stores, is implementing these measures as part of a strategic shift to adapt to evolving consumer needs and market dynamics.
The job cuts, affecting both the corporate office and retail locations, represent about 3.5% of Macy’s total workforce and approximately 1% of its brick-and-mortar establishments. In an official statement, Macy’s explained, “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.”
The affected stores, slated for closure in early 2024, are mall locations in Arlington, Va.; San Leandro, Calif.; Lihue, Hawaii; Simi Valley, Calif.; and Tallahassee, Fla. Macy’s plans to counterbalance these closures by opening smaller stores in outdoor shopping centers, specifically in strip malls. The company also manages 158 Bluemercury stores and 56 Bloomingdale’s stores.
This move follows Macy’s previous workforce adjustments in early 2020, when the company cut 2,000 corporate jobs and closed its Cincinnati headquarters and tech offices in San Francisco. The recent developments coincide with the impending promotion of Bloomingdale’s CEO Tony Spring to the position of Macy’s CEO, as the current chief executive, Jeff Gennette, is set to retire next month.
In December, an investment group expressed interest in Macy’s real estate portfolio, making a $5.8 billion bid to acquire the company. These strategic shifts underscore Macy’s efforts to navigate an evolving retail landscape and position itself for sustained success amid changing consumer preferences and market dynamics.
