Macy's, one of the leading retail companies, has recently made the decision to lay off 2,350 employees, which constitutes approximately 3.5% of its workforce. The majority of these layoffs occurred within Macy's corporate division. This strategic move is part of Macy's ongoing efforts to reduce costs and restructure its corporate framework.
The workforce reduction comes at a crucial moment as the company prepares for a CEO transition. Current CEO Jeff Gennette will soon be stepping down, and Tony Spring, the CEO-elect, will take over the reins of the company. Macy's spokesperson emphasized that this workforce reduction is the result of extensive consumer research conducted over the past year. The goal is to realign Macy's business to meet changing consumer expectations while ensuring consistent growth.
The new corporate structure focuses on three key principles: modernizing workflows, enhancing the customer experience, and streamlining decision-making by reducing layers of management. Macy's aims to allocate investments in these areas to adapt to the evolving retail landscape successfully.
In addition to the layoffs, Macy's plans to close five stores by 2024 and sell two furniture stores, as revealed in a letter addressed to employees. However, despite these closures, the company remains committed to expanding its presence with the opening of 30 new small-format Macy's locations by the fall of 2025.
In response to this news, Macy's shares experienced a marginal decline of 0.2%, reaching a value of $17.86 in after-hour trading.