(FinancialHealth.net) – Retail giant Macy’s announced massive changes to its company Tuesday as part of a 3-year plan to help with growth and profitability. Chairman and CEO Jeff Gennette released a statement explaining there’s a lot of work to do to “improve the bottom-line.”
Here are some of the details:
- 125 stores will close.
- 2,000 employees are expected to lose their jobs.
- $600 million in gross cost savings will be realized by the end of 2020.
- 9% of the support and corporate staff is being laid-off.
- Headquarters in Cincinnati, Ohio will shut down and the main headquarters in New York will handle everything.
- Tempe, Arizona will lose its customer service center.
- Offices in Lorain, Ohio and San Francisco, California will close.
Economists are unsure how much further the offline retail market will fall before leveling out. CNN’s Nathaniel Meyersohn pointed out the decision won’t just impact Macy’s:
Hundreds of American malls are already struggling.
Their troubles are about to get worse with the departure of a once reliable anchor tenant and draw for customers. https://t.co/0NQb0gb5Wi
— Nathaniel Meyersohn (@nmeyersohn) February 5, 2020
The latest news is another example of the industry’s volatility and retail’s changing landscape. While online retailers like Amazon continue to grow, brick-and-mortar stores are failing. There’s no doubt that thousands of workers are hurting today, but hopefully, our healthy job market will make it easy to find new jobs.
~Here’s to Your Financial Health!
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