Officials at Macy’s, the gigantic retailer that sponsors the annual Macy’s Thanksgiving Day Parade in New York, has announced it will eliminate the positions of 2500 workers in order to save itself an annual $100 million. Although the 2013 holiday shopping season was reported to be a strong one, Macy’s, which also operates the upscale Bloomingdale’s retail chain, says that it must continually reorganize in order to remain profitable. In after-hour trading at mid-week, Macy’s shares posted a 5.5 percent increase.
“We have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers,” CEO Terry Lundgren said in a press release.
Although Macy’s plans are to eliminate more than 2,000 jobs, it admits some employees will be given the option of being reassigned to other jobs and locations or transferred to another store. Because its online shopping presence continues to increase, Macy’s announced that it would be adding more online positions but did not specify exactly how many in comparison to the 2500 cuts it was making. In addition to the announced job cuts, Macy’s also plans on closing five stores that it considers have been underperforming, while it will open eight new locations. By the time all expected changes are completed, Macy’s will have a workforce of 175,000 employees operating at 844 locations around the country.
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Macy’s job cuts: 2,500 (but it’s adding online jobs)