NEW YORK, N.Y. (AP/KRON) – Macy’s says it is closing 125 of its least productive stores and cutting 2,000 corporate jobs as the struggling department store tries to reinvent itself in the age of online shopping.
The store closures represent about one fifth of Macy’s current total. The stores, which include about 30 that are in the process of closing, account for $1.4 billion in annual sales.
Macy’s didn’t specify how many jobs would be lost at the shuttered stores.
The corporate jobs will be shed as Macy’s closes its offices in Cincinnati and San Francisco, leaving New York as its sole corporate headquarters.
According to Business Insider, the Macy’s tech office in San Francisco has about 800 full-time workers and around 200 contractor workers.
Emily Workman, a spokeswoman for Macy’s, tells KRON4 that the functional operations of the tech office, including Macy’s Product and Digital Revenue, .com and Macy’s Technology, will move to their locations in New York City and Atlanta.
“We believe these changes will eliminate any duplication of efforts, bringing these teams closer to our business teams and strategy,” Workman said.
Some of the employees will be given severance and some will be given the opportunity to transfer, according to Workman.
“Macy’s remains an active member of the San Francisco community employing more than 5,500 people at 20 Macy’s stores in the Bay Area,” Workman added.
Macy’s is also testing a new store format that’s located at a strip center, instead of a mall.
The moves announced Tuesday come ahead of Macy’s annual investor meeting where CEO Jeff Gennette is expected to unveil a three-year reinvention plan.
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