Macy’s is cutting about 3.5% of workforce and closing five stores

Macy’s Inc. is laying off about 3.5% of its workforce ahead of the departure of longtime Chief Executive Officer Jeff Gennette, as the department-store operator retrenches amid lower demand. 

The company said the cuts include about 2,350 employees, mostly in corporate positions. It will also close five stores. The Wall Street Journal earlier reported the layoffs and store closures. 

“As we prepare to deploy a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce,” a company spokesperson said in an email. The moves will help Macy’s “to become a more streamlined company.” 

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Macy’s has struggled to compete as shopper preference has shifted away from department stores, with online retailers making inroads in key merchandise categories such as apparel and home goods. The company has posted a series of annual revenue declines in recent years, excluding the rebound period that followed pandemic restrictions. That has increased pressure on the company and sparked a $5.8 billion buyout bid from Arkhouse Management and Brigade Capital Management.

Gennette is set to retire in February, ceding the role to Macy’s executive Tony Spring. 

At the end of January 2023, Macy’s, which also owns the Bloomingdale’s and Bluemercury brands, had 94,570 workers and operated 722 locations.