Macy's To Lay Off 2,500 Workers & Close Some Stores

5:57 PM, Jan 8, 2014   |    comments
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NEW YORK-- Retailer Macy's will lay off approximately 2,500 workers as it restructures its business, it said Wednesday afternoon.

The layoffs and other cost-saving changes are expected to generate savings of about $100 million beginning this year, the company said in a press release.

"We have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers," said CEO Terry Lundgren in that press release.

In total, Macy's workforce includes about 175,000 people.

The retailer will close five Macy's stores in early spring 2014. The stores that will close are in Fiesta Mall, Mesa, Ariz.; Metcalf South Shopping Center, Overland Park, Kansas; Jamestown Mall, Florissant, Mo., Medley Centre, Irondequoit, N.Y.; and Fashion Place Mall, Murray, Utah.

In a large organizational change, it will also combine its Midwest Region with its North Region to create a new North Central Region.

The company had previously announced that eight new and replacement Macy's and Bloomingdale's stores are currently planned.

Macy's also said on Wednesday that comparable sales -- combined with comparable sales from departments licensed to third parties - rose by 4.3% in the 2013 holiday shopping season compared with the same period last year.

Company stock is up 5.2% to $54.52 per share, in after-hours trading.

FACTS ABOUT MACY'S INC.

Store Brands: Macy's and Bloomingdale's

Number of stores: About 840, including 36 Bloomingdale's

Locations: 45 states, District of Columbia, Guam, Puerto Rico

Number of employees: About 175,000

Founded: 1858 as R.H. Macy & Co. in New York City

Headquarters: Cincinnati

New York Stock Exchange symbol: M

Source: Macy's Fact Book 2013

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