Skip to main content
  1. News
  2. Business & Finance
  3. Industry

Macy's to cut 2,500 jobs

See also

Macy’s Department stores, one of the financially healthier American retailers, announced it will eliminate 2,500 jobs as part of a reorganization effort, according to a January 9, 2014 article published by the Chicago Tribune.

Macy’s reported a strong holiday shopping season and excellent profits for the most recent quarter- end. It has performed better than other retailers during the economic downturn and would seem like an unlikely candidate for job cuts, but Macy’s CEO Terry Lundgren feels the reorganization is necessary.

"Our company has significantly increased sales and profitability over the past four years, and we have created a culture of growth at Macy's Inc.," said Lundgren. "As the success of these strategies has unfolded, we have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers."

The reorganization effort will result in a net elimination of jobs, but in reality, there will some new positions created and some eliminated. The total Macy’s workforce will be around 175,000 after the changes take effect. The number of stores will be modified slightly, with five closing and eight opening, bringing the nationwide total to 844 locations.

Macy’s says that these changes will improve the financial bottom line and better serve a changing market. The retailer predicts the changes will save $100 million per year and push earnings per share for 2014 into the $4.40 to $4.50 range, beating Wall Street expectations.

Reaction to the news from investors has been positive, pushing Macy’s shares higher in early trading.

Want to find more money saving tips, financial advice, and consumer discounts? Visit Money Saving Parent today!

I hope you enjoyed this post! Click the “subscribe” link above or below to receive automatic updates whenever a new post is made.

Advertisement

News

  • Mt. Everest avalanche
    Disaster strikes Mt. Everest as at least 12 people were killed in an avalanche
    Video
    Watch Video
  • Most Earthlike planet discovered
    The Kepler telescope has discovered the most Earthlike, possibly habitable planet yet
    Space News
  • Easter crosses create debate
    Easter crosses spark a debate of separation of church and state in Ohio
    Headlines
  • Chelsea Clinton is preggers
    Former first daughter Chelsea Clinton is pregnant with her first child
    Headlines
  • Stanley Cup playoffs
    The battle for Lord Stanley's Cup is on, don't miss a minute of playoff action
    Sports
  • Ukraine discussed amongst U.S., E.U., Russia
    The U.S., E.U. and Russia agree on ways to diffuse the tension in Ukraine
    Video
    Watch Video

Related Videos:

  •  Welcome to Tates
    <iframe width="600" height="337" src="//www.youtube.com/embed/n-h5rqZIYgs?VQ=HD720&amp;autoplay=1"></iframe>
  • "Frozen" dresses sell for as high as $899 on eBay
    <div class="video-info" data-id="518184771" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518184771&autoStart=true"></div>
  • Customers enter a Walmart store
    <div class="video-info" data-id="518178572" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518178572&autoStart=true"></div>

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about Examiner.com and apply today!