American department store chain Macy’s has announced it will cut more than 10,000 jobs after a weak holiday season.
Macy’s, known for its annual parade, announced in August it would implement a restructuring plan which includes 100 store closures. On the back of a 2.1 % sales drop in November – December 2016, compared to last year, the chain unveiled it would cut more than 10,000 jobs as part of the restructuring plan.
CEO Terry Lundgren admitted he had expected a better holiday season and the shareholders definitely agreed as they sent the share price down 10 % following the revelation. The chain will close 68 stores in 2017, which will leave 3,900 people unemployed, but these can possibly work at other stores nearby. Another 6,200 people will be let go in an attempt to “streamline its management team”.
The goal is to save about 550 million dollars in 2017 and invest that money into its web shop and other growth strategies, like its Chinese activities. It is not the first time the chain, which also owns Bloomingdale’s, cut jobs and shut down stores as it did similarly over the past few years.