Macy’s To Axe Over 2,300 Jobs and Shut Down 5 Stores

On Thursday, Macy’s revealed plans to lay off around 3.5% of its staff and shut down five of its stores as part of the American department store chain’s strategy to reduce costs and revive slowing sales, according to The Wall Street Journal.

A Macy’s spokesman Chris Grams said that this decision will impact around 2,350 roles across its corporate office and stores. He also stated that the five stores will close in the early parts of this year.

In a statement, the company said, “As we prepare to deploy a new strategy to meet the needs of an everchanging consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company.”

Macy’s is currently putting a lot of its efforts toward trying to give the department store, which has been around for about 166, years a makeover. As the nature of shopping has changed massively over the years, this transformation will focus on making Macy’s a brand that hits home with consumers who are shopping online and looking for value. It’s also setting out to have a competitive edge over rivals like Amazon, SHEIN, and T.J.Maxx. Included in these plans, Macy’s aims to expand its private brands beyond the department store, extending to its beauty chain, Bluemercury, and more upmarket department store, Bloomingdale’s, with the goal of increasing revenue.

The add to these changes, in February 2024, the company will be bringing on a new leader as the current CEO, Jeff Gennette, retires. Stepping into his position will be Tony Spring, who is currently CEO of Bloomingdale’s.

Gennette and Spring wrote in the memo, “Despite our strong and tangible progress over the last few years, we remain under pressure.” It also said that the changes are in reaction to around a year of consumer research “to both better meet their expectations and to generate consistent growth.”

According to the memo, Macy’s plans to streamline the company using automation in its supply chain and will be outsourcing some roles, too. However, it has not given details of which jobs will go as a result of this. Macy’s will also downsize its management teams to aid faster decision-making. Saving on money from these changes, it will be investing more in visual display managers to elevate the aesthetic appeal of stores. There are also plans to upgrade digital features to enhance the online shopping experience for consumers.