Macy's Plans To Trim About 3.5% Of Workforce And Close Five Stores : Reports

(RTTNews) - Macy's Inc. (M) plans to trim about 3.5% of its workforce and close five of its stores as part of cost-cutting measures amid challenging market conditions, according to several media reports, citing a memo sent to employees Thursday afternoon.

The department-store chain will reportedly eliminate corporate jobs as it seeks to automate and move some roles offshore.

The reports said that the job cuts total about 2,350 positions, encompassing employees from subsidiaries Bloomingdale's and Bluemercury. The layoffs will involve the elimination of certain roles and the consolidation of teams.

The stores slated for closure are situated in Arlington, Va.; San Leandro, Calif.; Lihue, Hawaii; Simi Valley, Calif.; and Tallahassee, Fla. These locations are set to cease operations in early 2024.

The announcement coincides with ongoing speculation regarding potential bidders considering a bid for Macy's.

Last month Real estate investment firm Arkhouse Management and Brigade Capital Management reportedly offered to buy Macy's for about $5.8 billion and take the department-store chain private.

In October 2023, Macy's said, beginning in 2024, up to 30 new Macy's small-format locations would open across the country.