Macy’s to cut up to 4800 jobs after weak holiday sales

How much Macy’s expects to save on the expense line starting this year from its latest round of restructuring As a result of the expense reductions, Macy’s anticipates it will achieve “modest” improvement in its earnings before interest, taxes and depreciation (EBITDA) margin rate year over year.

Macy’s shares were up more than 3% in after-hours trading as investors digested the news of the cost savings. The US retail chain cited weak holiday sales owing to unusually warm weather and a stronger dollar as the major reasons for the cost-cutting measures.

Macy’s is cutting thousands of jobs after disappointing holiday sales.

In line with Macy’s cost-cutting strategy, the company also revealed that comparable sales at store open for more than a year declined by 4.7 percent in November and December. “So we will continue to add stores selectively while also being disciplined about closing stores that are unproductive or no longer robust shopping destinations”, the company’s CEO said in a statement on the closures.

Macy’s has closed 52 stores nationally over the past five years, not including the 40 closures announced Wednesday.

The department store chain outlined steps that will reduce its headcount by about 2,100 and make it more “agile”, as it feels the pinch from the growth of online shopping.

The two other California Macy’s scheduled to close this spring are located in Irvine and Los Angeles, though Macy’s plans to replace the Los Angeles location with a larger store in 2017.

The struggles are forcing Macy’s to close stores.

The other posts are senior executive and other office positions, of which about 35 percent will be retained in other jobs.

Thirty-six of the company’s stores will be closed in early spring 2016 with four more already having been closed by the end of 2015.

Final clearance sales at the Macy’s stores closing in early 2016 will begin on Monday, Jan. 11 and run for between eight to 12 weeks.

Macy’s started business at the mall in 2006 when it took over the Kaufmann’s store.

There are now about 770 total Macy’s stores. The 81,000-square-foot South Plainfield store opened 40 years ago.

Zayre: Opened in 1956 and headquartered in Framingham, Zayre was a discount store that spread all along the east coast until closing its doors in 1990. “But our eye is on a long-term vision of Macy’s, Inc.as a dynamic retailer that serves existing customers and acquires new ones through innovative approaches to the marketplace”.