Macy’s to cut thousands of jobs after weak holiday sales

The announcement was not fully unexpected, as Macy’s announced last fall that there would be some store closings in the new year, USA Today reported.

As part of the job cuts, the company said that it was adjusting staffing levels at each Macy’s and Bloomingdale’s store to match current sales volume to improve efficiency. The only two OH stores on the list are located in the Akron and Elyria areas, according to the company. Wednesday, Macy’s said real estate firms Eastdil Secured and Tishman Speyer are advising the company on its real estate holdings.

In an effort to become more agile, Macy’s will close about 36 stores, in locations including Los Angeles and Peoria, Ill., in early spring.

The struggles are forcing Macy’s to close stores. Best Buy closed on October 31 after the company declined to renew its lease with the mall’s management company.

Macy’s is consolidating four credit and customer services center facilities into three facilities.

It was also announced the Macy’s in Moscow, Idaho will close. An average of three to four positions will be affected in each of Macy’s and Bloomingdale’s approximately 770 going-forward stores (out of an average workforce of approximately 150 associates in each store), for a total of about 3,000 affected associates nationwide. That store has 47 employees. Final clearance sales at those stores begin January 11. It had announced it was closing stores in September.

The closures will reduce the chain’s expenses by $400 million.

Cincinnati-based Macy reports sales fell 5.2 percent in November and December at existing stores. “We also continued to feel the impact of lower spending by global tourists as the value of the dollar remained strong”.

The job cuts are widespread: Macy’s also said it’s offering a “voluntary separation opportunity”, or severance deal, for 165 senior executives.

Some of the cut employees are expected to be placed in other positions.

The local closings are among 40 stores targeted for shut down following a disappointing holiday season.

Additionally, Macy’s reduced its 2015 fourth quarter earnings guidance to $2.18 to $2.23 per share from $2.54 to $2.64 per share.