Macy's revamp brings layoffs, store closings and deeper ecommerce investment
Macy’s plans to lay off over 2,100 workers, including retail associates and back-end operations, and eliminate 4,500 job positions in an effort to restructure.
Yet Macy’s intends to shore up its investments in ecommerce and mobile customer experience given a 25-percent jump in online sales compared to last year.
The news Wednesday comes just weeks after the top retail shopping season and will impact all segments from a call center to each Macy's and Bloomingdale store locations, according to a USA Today report. The company operates 770 stores.
The reorganization will involve cutting at least three job roles at each store and about 600 back-office roles. Many employees in the positions will be reassigned, according to the report. Macy's also plans to offer an early retirement incentive to 165 tenured executives.
The restructure, according to a Bloomberg report, will slice $400 million in annual expenses, and will include closing 40 Macy’s stores. The closures were initially announced in early fall of 2015.
"We can operate more effectively with an organization that is flatter and more agile," Lundgren stated in an announcement, according to Bloomberg, "so we can pursue growth and regain market share."