- Macy’s is cutting 100 management jobs as part of a restructuring plan.
- The department store is expecting this change to generate annual savings of $100 million.
- Macy’s said it is putting additional resources behind attracting new customers, improving its supply chain, and innovating inventory management.
Macy’s is cutting 100 management jobs as part of a restructuring plan.
As part of its fourth-quarter earnings results on Tuesday, the department-store chain announced that it will be streamlining its management structure to cut costs and speed up decision-making. Its stock price rose as much as 5.5% in premarket trading.
Macy’s is expecting these cuts to generate savings of $100 million annually starting this year. For fiscal 2018, the company recorded one-time charges of roughly $80 million pre-tax for restructuring activities.
A spokesperson for Macy’s said that the job cuts will begin March 1.
"The steps we are announcing to further streamline our management structure will allow us to move faster, reduce costs and be more responsive to changing customer expectations," CEO Jeff Gennette said in the earnings release.
With these savings, Macy’s will look to improve its supply chain and inventory management system and attract new customers.
"Importantly, these changes build the foundation we need to achieve meaningful enterprise productivity improvements," Gennette said.
He continued: "These actions impact colleagues who have made strong contributions to the company over the years, and I thank them for their service."
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