Macy's Announces Major Restructuring: 100 Jobs Cut, Stores Closed
Macy's has revealed substantial changes in its operations, including a management overhaul and store closures, as it contends with external pressures and merchandising hurdles. The retailer is targeting savings of $100 million annually through cost-cutting measures.
The overhaul has led to the elimination of 100 executive positions. Meanwhile, Macy's has finalized the closure of stores earmarked for shutdown two years ago and is now redefining its store strategy into three categories: flagships, magnet stores, and neighborhood stores. The company is also closing a New York State-based tech support plant, resulting in 57 lay-offs in June. These lay-offs do not impact unionized store associates.
To cut costs, Macy's is outsourcing its tech support to an external vendor. This move is anticipated to create new roles with the vendor. However, details about the vendor's leadership remain unavailable. Despite these efforts, Macy's comparable sales are projected to be flat to up 1%, indicating ongoing merchandising challenges that the company has yet to fully address at most locations.
Macy's continues to traverse a challenging retail environment, with external forces threatening the closure of three-quarters of its stores and enclosed malls. The retailer is responding with a new store strategy and cost-cutting measures, including a management overhaul and outsourcing of tech support. However, merchandising issues persist, and the company's sales reflect these ongoing challenges.
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