Macy’s to Cut 3,900 Corporate, Management Jobs in Restructuring

Daniel Fowler
June 29, 2020

Photo (c) J. Michael Jones - Getty ImagesIn an effort to mitigate the financial toll of the coronavirus pandemic, Macy's is cutting almost 4,000 corporate and management jobs, or around 3 percent of its workforce.

However, during a reopening of its flagship Manhattan store, Macy's Inc. had told earlier this week that the company would bring bank a majority of its furloughed workers in the first week of July. (NYSE:M) today announced details of a restructuring that will align its cost base with anticipated near-term sales as the business recovers from the impact of the COVID-19 pandemic, including the closure of stores from March 18 through May 4, 2020 and gradual re-opening.

The COVID-19 pandemic has led to a number of bankruptcy filings in the retail sector.

It said it would cut headcount at stores and throughout its supply chain and customer support network. "While the reopening of our stores is going well, we do anticipate a gradual recovery of business".

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The company expects the cuts to result in savings of $365 million in 2020, or some $630 million in annual savings going forward. Many furloughed workers will be requested to return to their careers starting up in July, in accordance to a statement. "These were being challenging decisions as they affect numerous of our colleagues".

"We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward", Gennette said.

Previously this year, the greatest division store gained $4.5 billion in new funding to protect the impact of the pandemic on its base line. He said the company's lower cost base would combine with approximately $4.5 billion in new financing to increase company stability and flexibility.

Macy's had in May warned of almost $1 billion in operating losses in its first quarter and said it would turn into a "smaller company".

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