- Macy’s says it is cutting 100 management jobs as part of a restructuring plan.
- The department store is expecting the plan to generate annual savings of $100 million.
- Macy’s said it was putting additional resources behind attracting new customers, improving its supply chain, and innovating inventory management.
Macy’s says it is cutting 100 management jobs as part of a restructuring plan.
As part of its fourth-quarter earnings results on Tuesday, the department-store chain announced that it would be streamlining its management structure to cut costs and speed up decision-making. Its stock price rose as much as 5.5% in premarket trading.
Macy’s is expecting these cuts to generate savings of $100 million annually starting this year. For fiscal 2018, the company recorded one-time charges of roughly $80 million pretax for restructuring activities.
A Macy’s representative said the job cuts would begin Friday.
“The steps we are announcing to further streamline our management structure will allow us to move faster, reduce costs and be more responsive to changing customer expectations,” CEO Jeff Gennette said in the earnings release.
With these savings, Macy’s will look to improve its supply chain and inventory-management system and attract new customers.
“Importantly, these changes build the foundation we need to achieve meaningful enterprise productivity improvements,” Gennette said.
“These actions impact colleagues who have made strong contributions to the company over the years, and I thank them for their service.”