Macy’s job cuts this 2014 may soon leave 2,500 people out of work as part of the national stores’ cost-saving measures. Announced this Wednesday, Macy has said that with their decision to cut thousands of jobs in the not-too-distant future, the company's shares this week climbed over seven percent within premarket trading. UPI.com tells the pertinent details on this decision this Thursday, Jan. 9, 2013.
The Macy’s job cuts don’t have a specific date of termination for associates yet, but the retailer has confirmed that roughly 2,500 positions will be slashed, as well as five stores closing sometime this spring in Kansas, Missouri, Arizona, Utah, and New York. However, a total of eight new stores (both Macy’s and Bloomingdale’s) will be opening up in various locations across the U.S.
According to the press release, Macy’s ultimately hopes to save somewhere around $100 million throughout this year. As cited in a recent report concerning the employment of the well-known retailer, Macy’s provides jobs to roughly 175,000 associates, and in total earned nearly $28 billion in its 2012 fiscal year among its almost 900 Macy’s and Bloomingdale’s stores, in addition to its online sales.
“The 2,500 as part of the Macy’s job cuts will be distributed between front-end employees and those who work behind the scenes in merchandise planning and central office roles. Other employees will be transferred or given more to do, and some positions currently open won't be filled. Changes to the organizational structure also include the combining of the Midwest and North regions to create a North Central Region, and folding nine districts into others nearby, bringing the total of districts down from 69 to 60.”
Following this major cost-cutting measures announcement, Macy’s shares bounced up over seven percent this Thursday morning.