Macy’s will lay off around 2,350 workers and close five stores as it becomes the latest victim of America’s retail apocalypse.
A leaked internal memo shows the chain is planning to add more automation into its supply chain and reduce management layers to speed up decision-making.
The job cuts will affect around 3.5 percent of its overall workforce and 13 percent of its corporate staff.
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 over the last few years, we remain under pressure.’
Macy’s will lay off around 2,350 workers 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 the changes came from a response to nearly a year of consumer research to ‘better meet their expectations and to generate consistent growth.’
Back in October, the brand announced plans to focus more heavily on its ‘small format’ stores outside of city centers.
It marked a change in direction for the company which is known for its huge locations often in urban malls.
But by 2025, it wants to open an additional 30 smaller stores which are generally between 30,000 and 50,000-square-feet.
Originally the brand’s miniature stores were called ‘Market by Macy’s’ but it confirmed in October the latest locations would simply be named ‘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 shopping centers.’
Back in October, the brand announced plans to focus more heavily on its ‘small format’ stores outside of city centers
Bed Bath & Beyond filed for bankruptcy this year, spelling the end of its 896 stores
Macy’s joins a growing list of retailers which have shut up their bricks and mortar stores after struggling to compete with online giants like Amazon.
Twenty major retailers axed 2,847 locations between them in 2023, according to Business Insider – as more and more shoppers buy their products online
The issue has been exacerbated by rampant spates of crime which have forced many companies to lock up their products. Earlier this year, Target alone said it was losing as much as $500 million a year to theft.
It is little wonder then that retailers are struggling to cope. Bed Bath & Beyond, Rite Aid and Party City are among the major chains to have filed for bankruptcy in the last 12 months.
A spokesman for Macys said: ‘As we prepare to deploy a new strategy to meet the needs of an everchanging consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5 per cent to become a more streamlined company.’