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Macy’s said Thursday it planned to fire at least 3,900 workers in an effort to cut costs.
The troubled retailer says the job cuts are part of a restructuring that it hopes to save $ 365 million in costs this year and $ 630 million in costs annually. The layoffs will be associated with $ 180 million of cash costs before taxes; Most of those costs will be recorded in the second quarter.
The announcement comes less than a week before the retailer’s first-quarter report, which asked to delay due to the coronavirus pandemic. However, Macy’s has given investors a couple of advances and says it expects a sharp quarterly loss and a decline in sales. He said on June 9 that he expected to report an adjusted loss per share of $ 2.03 in $ 3 billion of revenue.
Macy’s has been slowly reopening the locations since May 4, after closing all of its stores for seven weeks to limit the spread of the virus. Executives said last month that sales had been stronger than expected at reopened stores, but that reflected an annual decline in sales of around 50%, compared to forecasts for a drop from 80% to 85%. .
The 3,900 layoffs will be at the corporate and management level, but they are not the only layoffs that department stores have undertaken.
“In addition, Macy’s Inc. has downsized its portfolio of stores, supply chain and customer service network, which will adjust as sales recover,” the company said in a statement Thursday.
Macy’s shares fell 1.7% in Thursday morning trading, while exchange-traded fund (XRT) SPDR S&P rose 0.1%. The S&P 500 was also up 0.1%.
Write to Alexandra Scaggs at [email protected]
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