Macy’s Inc. plans to cut jobs and close several stores.
In total, around 3.5 percent of the workforce will be laid off and five stores will be closed, several media reports based on an employee letter from Thursday. This project is part of cost-cutting measures. The U.S. department store chain will reportedly cut corporate jobs as it looks to automate and outsource some tasks overseas.
According to the reports, a total of around 2,350 jobs will be cut. This also affects the employees of the subsidiaries Bloomingdale’s and Bluemercury. The layoffs will include the elimination of certain functions and the merging of teams.
The stores affected by the closure are in Arlington, California; San Leandro, California; Lihue, Hawaii; Simi Valley, California; and Tallahassee, Florida. These locations are scheduled to cease operations in early 2024.
The announcement coincides with ongoing speculation about potential investors considering a bid for Macy’s. Last month, real estate investment firms Arkhouse Management and Brigade Capital Management reportedly offered to buy Macy’s for about $5.8 billion and take the department store chain private.
In October 2023, Macy’s said it would open up to 30 new small-format Macy’s stores across the country starting in 2024.(dpa)
This edited post has been translated from English.