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| Macy's flagship store in New York City, 2020. Daily KOS |
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Macy's announces it will lay off 3,900 'corporate and management jobs'
Daily KOS
June 25, 2020
Area: New York
On Thursday, retail giant Macy's announced new "restructuring" plans to "address sales impact from the COVID-19 pandemic". According to Macy's, the company - like most retail businesses - is facing steep declines in profits as a result of the current public health and economic crises. To that end, Macy's says it will be eliminating about 3,900 "corporate and management" jobs, while the rest of the already-furloughed workforce plan on returning to work by July 5. Macy's says it estimates that these moves will "create approximately $630 million per year in savings."
Macy's went on to say that as "sales recover," the cuts being made would be "adjusted." But the retail company admitted that going forward, Macy's would be a considerably smaller company. Macy's joins the growing number of businesses in the retail and service industry that do not see our country's economic recovery - or the prospects of reopening the country prematurely - as a solution to our economic forecast.
The cuts will downsize the company's corporate employment structure by 20%, according to Fortune. The United States' largest department store company had previously announced closures in February of 125 stores, the loss of many of the retail jobs connected with those stores, and the loss of 2,000 corporate jobs. Like most retail companies, Macy's has been facing dwindling sales for years now, and like most of our economy, the COVID-19 pandemic has simply expedited processes already underway for our country's fragile economy.
Chairman Jeff Gennette says that he is hopeful that the newer "lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company." Macy's says the layoffs will save the company around $365 million through the end of 2020.
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