Macy’s cuts nearly 4K jobs as it reopens hundreds of stores

“We know that we will be a smaller company for the foreseeable future,” its CEO said

National /
Jun.June 26, 2020 10:00 AM
Macy's Herald Square at 151 West 34th Street Macy's CEO Jeff Gennette (Getty)

Macy’s Herald Square at 151 West 34th Street Macy’s CEO Jeff Gennette (Getty)

Macy’s eliminated thousands of jobs this week in another sign of the retail sector’s struggles, as companies work to emerge from the coronavirus lockdowns.

The department store chain cut about 3,900 corporate and management jobs, which is expected to save $365 million this year and $630 million a year going forward, according to Bloomberg. The move came as it has also been reopening hundreds of locations across the country.

“We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward,” CEO Jeff Gennette said, according to the report.

Retail — particularly brick-and-mortar stores — has been hit particularly hard by the pandemic. Macy’s closed all of its locations on March 18 and furloughed most of its employees that month. But even before stay-at-home orders kept shoppers home, retail had been battered by changing consumer habits, namely the shift to online buying.

As lockdown orders lifted, Macy’s announced plans for all of its 775 stores to reopen. It also reported stronger sales than expected — although its performance still lagged far behind last year. Macy’s reported a preliminary loss of $652 million for the three months ending on May 2, compared to a $136 million profit during the same period in 2019. Before making that announcement, the retailer said it had secured a new $4.5 billion financing package to help with debt obligations and operating costs. [Bloomberg] — Georgia Kromrei


Related Articles

arrow_forward_ios
Triple Five Group CEO Don Ghermezian and American Dream Mall in East Rutherford (Getty, World Retail Forum)
Same old story: American Dream mall misses another payment
Same old story: American Dream mall misses another payment
Cannabis shop, marijuana growing facilities
Cannabis entrepreneurs pay premiums for real estate
Cannabis entrepreneurs pay premiums for real estate
Amazon's Andy Jassy with Amazon Fresh store front (Illustration by The Real Deal with Getty, Google maps)
Amazon scraps plans for big-box store
Amazon scraps plans for big-box store
Kohler Interiors' Rachel Kohler with  21-05 51st Avenue (Loopnet, Getty)
Tile retailer Ann Sacks inks 21K sf lease in Long Island City
Tile retailer Ann Sacks inks 21K sf lease in Long Island City
(Photo Illustration by The Real Deal with Getty)
Office attendance finally reaches 50%
Office attendance finally reaches 50%
Vornado's Steve Roth with 1540 Broadway
Vornado writes down portfolio by $600M
Vornado writes down portfolio by $600M
(Photo Illustration by The Real Deal with Getty)
Big-box retail growth has Bed Bath & Beyond landlords thinking
Big-box retail growth has Bed Bath & Beyond landlords thinking
Chick-fil-A CEO Andrew Cathy and a rendering of Chik-fil-A 2205 Central Park Avenue in Yonkers  (Chik-fil-A/City of Yonkers)
Chick-fil-A hatches first Westchester location
Chick-fil-A hatches first Westchester location
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...