After poor Christmas holiday sales, Macy’s, one of the largest retailers in the US, has announced more plans to cut thousands of jobs and close dozens of stores across the country.
The department store said Wednesday it would cut thousands of jobs and close 68 stores by the middle of 2017, part of a previously-announced plan to eliminate 100 stores. Additionally, it plans to "opportunistically" close another 30 stores over the next few years as leases expire, in order to focus on its most profitable outlets.
The newest 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 was founded in 1858 in New York City and currently operates 730 stores across the country. But competition from online shopping has hit the bottom 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."
After another disappointing holiday sales season, the company is looking for ways to slim down. The retailer said these latest moves would help save $550 million (522 million euros) annually starting in 2017 from which it can invest $250 million in e-commerce and other new growth efforts.