NEW YORK, (MILLAT+APP/AFP) – Macy’s unveiled plans
Wednesday to cut as many as 10,100 jobs as the iconic US retailer closes stores and downsizes following another disappointing holiday sales season.
Store closures will eliminate 3,900 sales jobs, while a series of
streamlining moves, that include cutting middle managers and restructuring
store operations, will eliminate an additional 6,200 positions.
Macy’s intends to close 68 stores by the middle of 2017, part of a
previously-announced plan to eliminate 100 stores. It also will
“opportunistically” close another 30 stores over the next few years as leases expire.
The retailer said the moves will help save $550 million annually
starting in 2017 from which it can invest $250 million in e-commerce and other growth efforts, such as the Bluemercury cosmetics line.
Macy’s chief executive Terry Lundgren said “we continue to experience
declining traffic in our stores where the majority of our business is still
transacted.”
“Whether it is improving corporate agility, enhancing our customer
engagement strategies, or continuing to capitalize on the potential value of
our real estate assets, we remain focused on the actions that will ultimately improve our financial results,” he said.
The moves come amid predictions of significant cutbacks in
brick-and-mortar stores with the rise of e-commerce. Macy’s also announced store closures and jobs cuts in January 2015 following disappointing holiday sales.