Macy’s fires nearly 4,000 employees

The layoffs, which represent 3% of Macy’s workforce, will save the company about $ 630 million annually. Macy’s is reopening many of its stores in the United States, which the company previously said are working better than expected.

“Covid-19 has significantly impacted our business,” Macy’s CEO Jeff Gennette said in a statement Thursday. “While the reopening of our stores is going well, we anticipate a gradual recovery in business, and we are taking steps to align our cost base with our expected lower sales.”

The company also announced that many of its fired employees will be brought back in the first week of July. Macy’s placed a majority of its 125,000 employees on leave in March after the temporary closure of its stores after the start of the pandemic. Stores began reopening in early May when states lifted their requests to stay home.
Macy’s (METER) is slated to release its first-quarter results on July 1. Macy’s expects an operating loss of around $ 969 million between February and May, which is slightly less than the $ 1.1 billion that it was originally forecast to lose.

Still, the first quarter will be grim compared to the same quarter the year before. Macy’s expects sales to drop 45% to $ 3 billion and expects a quarterly net loss of $ 652 million. He made a quarterly net profit of $ 136 million for the same time period in 2019.

Macy’s, which also owns Bloomingdale’s and Bluemercury, has about 775 stores in the United States.