Macy’s cuts corporate headcount by 3,900 as virus takes toll

Pedestrians walk in front of the Macy's flagship store in the Herald Square area of New York. New York State Governor Andrew Cuomo announced that New York has entered Phase 2 of re-opening which eases business restrictions amid the coronavirus pandem

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.



Latest news

UK watchdog says Wirecard making progress on addressing concerns
The company, once worth over €20bn (£18bn, $22bn), collapsed after admitting to a €1.9bn hole in its balance sheet. "As you may have seen on the news, Wirecard AG filed for insolvency on Thursday".

Chinese lawmakers review Hong Kong security bill as protests continue
When asked which officials exactly the restrictions target, Zhao said that they "knew this themselves, instinctively". China has chose to impose visa restrictions on USA individuals with egregious conduct on HK related issues".

Barista gets $58k in tips for refusing to serve person without mask
She said: "I am not scarred or bothered by your ignorant fraud ass's, not so sorry you losers got nothing better to do". In a statement shared online, a Starbucks spokesman said: "We want everyone to feel welcome in our stores".

IPad 2020 could get this display upgrade to fight Galaxy Tab S7
Last week images of a 20W iPhone charger leaked , suggesting Apple meant to ship the iPhone 12 with a more powerful adapter. Apple latest chips are the A13 Bionic in the iPhone 11 and iPhone 11 Pro , and the A12Z in the iPad Pro 2020 .

Gilead's remdesivir set to become Europe's first COVID-19 therapy
Not only in Europe, but the drug is now being used for treating severe COVID-19 cases in the US, India, Japan and South Korea. Umanath said that Tamil Nadu was the first State to distribute the drug to every district.

Other news