Macy’s to slash 2,350 jobs and ax FIVE stores as it becomes latest victim of America’s ‘retail apocalypse’
Macy’s will lay off about 2,350 employees and close five stores as it becomes the latest victim of America’s retail apocalypse.
A leaked internal memo shows that the chain plans to add more automation to its supply chain and reduce management layers to speed up decision-making.
Job losses will affect approximately 3.5 percent of the total workforce and 13 percent of corporate employees.
It comes as Macy’s President Tony Spring prepares to succeed Jeff Gennette as CEO next month.
Gennette and Spring wrote in a memo seen by the Wall Street Journal: “Despite our strong and tangible progress in recent years, we remain under pressure.”
Macy’s will lay off about 2,350 employees and close five stores as it becomes the latest victim of America’s retail apocalypse
It comes as Macy’s President Tony Spring prepares to succeed Jeff Gennette, pictured, as CEO next month.
They added that the changes came in response to nearly a year of consumer research to “better meet their expectations and generate consistent growth.”
In October, the brand announced plans to increase its focus on its ‘small format’ stores outside city centres.
It marked a change in direction for the company known for its huge locations, often in urban shopping centers.
But by 2025 it wants to open another 30 smaller stores, generally between 30,000 and 50,000 square feet.
The brand’s miniature stores were originally called “Market by Macy’s,” but in October it was confirmed that the newest locations would simply be called “Macy’s.”
At the time, Macy’s Chief Financial Officer Adrian Mitchell said such stores were “efficient to operate” and allowed the retailer to target “high-traffic malls.”
In October, the brand announced plans to increase its focus on its ‘small format’ stores outside city centres
Bed Bath & Beyond filed for bankruptcy this year, meaning the end of its 896 stores
Macy’s joins a growing list of retailers that have closed their physical stores after struggling to compete with online giants like Amazon.
According to Business Insider, 20 major retailers will cut a combined 2,847 locations by 2023 as more and more consumers buy their products online
The problem has been exacerbated by the rampant crime wave that has forced many companies to lock up their products. Earlier this year, Target alone said it was losing as much as $500 million a year due to theft.
It’s no wonder that retailers are struggling to deal with this. Bed Bath & Beyond, Rite Aid and Party City are among the major chains to file for bankruptcy in the past 12 months.
A Macys spokesperson said: “As we prepare to implement a new strategy to meet the needs of an ever-changing consumer and marketplace, we have made the difficult decision to reduce our workforce by 3.5 percent to to become a more streamlined company.’