The leading department store chain Macy’s is reportedly considering the termination of 2,350 employees and the closure of five stores as part of a cost-cutting initiative, according to a Wall Street Journal (WSJ) report. The job cuts represent 3.5% of Macy’s total workforce, excluding seasonal hires, as detailed in an internal memo circulated to employees on Thursday. The broader strategy aims to eliminate 13% of the corporate staff, with the saved funds intended to enhance the overall shopping experience for customers.
While specific details about the jobs being outsourced or automated are yet to be disclosed by Macy’s, the company plans to invest in visual display managers to improve store aesthetics and enhance digital functions for a smoother online shopping experience, according to an insider.
This development comes a month before Macy’s President Tony Spring assumes the role of CEO from Jeff Gennette. The company is under additional pressure from investors who have initiated a $5.8 billion bid to acquire the department store chain.
In an internal memo accessed by WSJ, Gennette acknowledged the company’s progress but noted ongoing challenges, citing nearly a year of consumer research as the basis for the strategic move. Macy’s, which also owns Bloomingdale’s department stores and Bluemercury beauty and skincare shops, is expected to officially respond to the reports in the coming weeks.
Macy’s joins a growing list of companies announcing job cuts this year, with tech giant Google, led by CEO Sundar Pichai, also implementing lay-offs in various units, including Voice Assistant, hardware teams, advertising sales, and augmented reality. According to Reuters, tech firms, including Google and Amazon, have collectively laid off more than 7,500 employees in January.