On Wednesday, Macy's announced it will lay off 2,500 employees and change up its organization by closing 5 stores, opening 8 others and combining its Midwest and Northern regions into one.
It is not yet known where the layoffs will occur; however, the company says those workers will be eligible for severance. Other workers will likely be reassigned or transferred, and some currently open positions will not be filled.
One role that will be eliminated is the district planner of soft home categories among the merchandise planning portion of the business, which focuses on home assortments. Instead, those responsibilities will be shifted to regional and national employees.
The company also plans to reduce some positions in stores, but did not specify which ones would be affected. Administrative positions in the central office and across the company are also expected.
Meanwhile, the company will continue to add positions in other areas, including:
- Online operations
- Direct-to-consumer fulfillment
- New stores
In a press release, company officials touted sales growth and profitability in the past four years while introducing the new North Central Region that will bring the company's total number down to 7.
"We began five years ago with a set of business strategies that were largely untested by a national retailer of our size and scope," CEO, Chairman and President Terry Lungren said. "As the success of these strategies unfolded, we have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the needs of our customers."
The company also plans to combine 9 store districts with others nearby, reducing the total number to 60 to "equalize workloads and spans of control."
STORES TO CLOSE
The 4 Macy's stores at the locations listed below will close in the spring of 2015, and clearance sales are expected to begin next week and run for the next 10 to 11 weeks.
- Fiesta Mall in Mesa, Ariz.
- Metcalf South Shopping Center in Overland Park, Kan.
- Jamestown Mall in Florissant, Mo.
- Medley Center in Irondequoit, New York
The store located in Fashion Place Mall in Murray, Utah, will close on Sunday and there will be no final clearance sale.
STORES TO OPEN
There are 8 new or replacement Macy's and Bloomingdale's stores planned or already under construction. They will be located in:
- University Town Center in Sarasota, Fla.
- Shops at Summerlin in Las Vegas, Nev.
- Mall at Bay Plaza in The Bronx, New York
- Plaza Del Caribe in Ponce, Puerto Rico
- Mall at Miami Worldcenter in Miami, Fla. (Both Macy's and Bloomingdale's)
- Stanford Shopping Center in Palo Alto, Calif.
- Ala Moana in Honolulu, Hawaii
After all the changes take effect, Macy's, Inc., will operate 844 stores in 45 states, the District of Columbia, Puerto Rico and Guam.
Company officials estimate the changes will save about $100 million annually, starting in 2014.