Macy's expects the moves to save $365 million in fiscal 2020, and about $630 million on an annualized basis.
Macy's Inc said on Thursday it would lay off about 3,900 employees in corporate and management positions to help lessen some of the financial strain of dwindling sales due to the COVID-19 pandemic.
Macy's Inc. had around 123,000 employees at the end of January.
Aside from that, in the wake of a withering outlook in demands, Macy's Inc. had also been quoted saying at its statement that the departmental store chain had chose to reduce staffs at its stores, customer support networks alongside supply chains. As many as 25,000 bricks-and-mortar stores are expected to permanently close this year, according to Coresight Research, which will have far-reaching effects on shopping malls, workers and local communities.
For the three months ended May 2, Macy's Inc. reported sales of $3.02 billion, the company announced earlier this month.
Macy's is reopening its stores but that's not stopping the layoffs.
Police vehicles park outside Macy's flagship Herald Square store in NY city after it was broken into on June 1, 2020.
When stores reopened, CEO and spin master Jeff Gennette said performance was better than anticipated-but they haven't returned to pre-COVID levels.
Gennette thanked his departing colleagues for their service to the company, as well as those who had continued working during the lockdown and those still on furlough. Many furloughed workers will be requested to return to their careers starting up in July, in accordance to a statement. "Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company".
Investors, however, are still concerned about Macy's future and sent the stock lower in Thursday trade.