Macy’s will eliminate 2,500 jobs in cost-cutting move
US department store giant Macy’s said Wednesday it will eliminate 2,500 jobs as a cost-cutting move, equivalent to about 1.4 percent of its workforce.
The move is part of an initiative to “sustain profitable sales growth in the years ahead,” Macy’s said in a statement after the close of the market.
“We have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers,” said Macy’s chief executive Terry Lundgren.
Macy’s expects to save annually $100 million through the moves starting in 2014, and it will take $120-$135 million in cost-cutting charges.
Macy’s employs about 175,000.
Macy’s plans to close five stores, but it also plans to open five new Macy’s stores and three new stores of its upscale Bloomingdale’s chain.
Macy’s operates about 840 department stores in the US and generated sales of $27.7 billion in 2012.
Separately, Macy’s said its comparable sales rose by 3.6 percent in the key November/December holiday shopping period. The holiday shopping season was “successful” for the company, Lundgren said.
The company confirmed its 2013 earnings forecast and said 2014 earnings would be $4.40-$4.50 per share, above the $4.32 seen by analysts.
[Image via Agence France-Presse]