A person examines Macy’s Inc. department store near Union Square in San Francisco, California, USA. USA, Thursday June 18, 2020.
Michael Short | Bloomberg | fake pictures
Macy’s announced Thursday that it is laying off 3,900 corporate jobs, or 3% of its total workforce, in a move to cut costs as its business has been hit by the coronavirus pandemic.
The department store chain said it expects to save about $ 365 million through layoffs in fiscal 2020. It said it will save approximately $ 630 million on an annualized basis.
Additionally, Macy’s said it has cut staff in its stores, supply chain and customer service network, saying it will adjust as sales pick up.
“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 lower anticipated sales,” Chief Executive Jeff Gennette said in a statement.
“We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that advance,” he said.
Macy’s shares lost approximately 3% in pre-market trading on the news.
Macy’s said in fiscal year 2020 that it plans to spend about $ 180 million for these restructuring moves, most of which will be recorded during the second quarter.
The retailer is set to report first-quarter earnings on July 1, as it has released preliminary results. He had said in late May that he planned to report a first-quarter operating loss of $ 905 million to $ 1.11 billion, compared to net income of $ 203 million a year ago.
Macy’s shares fell 60% this year.
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