Macy’s to Eliminate 7,000 Jobs

Macy’s announced Monday that it will cut 7,000 jobs and slash its dividend as the department store chain looks to lower expenses and preserve cash amid a severe pullback in consumer spending.

From the Associated Press:

Cincinnati-based Macy’s said the job cuts, which include some unfilled jobs, will come at offices, stores and other locations. The company currently employs about 180,000 people.

Macy’s had already announced last month that it would close 11 stores, affecting 960 employees, after retailers suffered through the worst holiday season in decades.

Macy’s said it expects the latest job cuts and other actions to lower its selling, general and administrative expenses by about $400 million annually starting in 2010.

The company also slashed its quarterly dividend to 5 cents from 13.25 cents. The dividend will be paid on April 1 to shareholders of record March 13.

Department stores have been especially hard-hit by the poor economy as shoppers turn to discount stores. Last month, department store chain Gottschalks Inc. put itself up for sale and said it had filed to reorganize in a Chapter 11 bankruptcy. Neiman Marcus Group Inc. said it was cutting about 375 jobs.

Macy’s also announced plans Monday to roll out its strategy to localize merchandising to specific markets on a national scale. It began testing the strategy in 20 regional markets last spring.

As part of the restructuring, the company will begin eliminating its Macy’s division structure and integrating all functions into a single organization. Macy’s central buying, merchandise planning, stores senior management and marketing functions will be located primarily in New York.

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2 Comments on “Macy’s to Eliminate 7,000 Jobs”


  1. […] Macy’s to Eliminate 7000 Jobs « Kreuzer’s Korner (kreuzer33.wordpress.com) – February 02, 2009Macy’s announced Monday that it will cut 7000 jobs and slash its dividend as the department store chain looks to lower expenses and preserve cash amid a severe pullback in consumer spending. From the… […]

  2. Diane Says:

    Hi!!!

    FOOD FOR THOUGHT!!

    It’s time for US to take control of our own Future… Where we are is a Direct result of our
    own thinking…

    Wouldn’t it be fair to say that when the US DEPT of Labor came out and said that by the year 2010 = next year…the LARGEST employer would by SELF…

    We ALL should Plan accordingly…

    Your future is in YOUR hands not your employers…unless YOU give them YOUR power…

    “Obstacles are those frightful things you see when you take your eyes off your goal.”- Henry Ford


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