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.

Related:

Comments

Latest news

Iran issues arrest warrant for Trump over killing of top general
Washington blamed Soleimani for masterminding attacks by Iran-aligned militias on US forces in the region. Soleimani and other Iranian and Iraqi officials were killed in a USA airstrike near Baghdad in January.

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".

How to block Windows 10 feature updates from downloading
One thing that some system administrators are noticing is that it is no longer possible to defer feature updates for up to a year. As Ghacks points out, this is the same pause limit that has been available to users of Windows 10 Home since it was released .

Newcastle v Manchester City: FA Cup quarter-final
On the win over Toon, Guardiola added: "First we are in the semi-final, it was not easy to attack against defenders so, so deep. It just goes to show, he went away as a youngster and played games and now we welcome him back".

Google's Phone App To Detect The Nature Of Business Calls
Google will turn on these settings for every user however if you like to stay mysterious, you can turn this feature off as well. Google will soon let Android users know why a business is calling them through the Phone app .

Other news