The Chicago Tribune reports that 2,500 Macy’s employees will soon be out of work as the retailer announced plans to close stores and layoff workers as a part of a cost-reduction plan.
Some stores in parts of Arizona, Kansas, Missouri, New York and Utah will close in the spring, but eight new and replacement Macy’s and Bloomingdale’s stores are in the works, the Tribune reports.
Beyond the 2,500 expected layoffs, some associates will be given extra duties or transferred, Macy’s told the Tribune. Current open positions will not be filled. Macy’s said it will keep hiring employees for its online operations and website order-fulfillment outfit. The company currently has 175,000 associates.
There are also plans to cut front-end employees at some stores, although Macy’s did not specify where or how many. Macy’s also plans to reduce staff behind the scenes, including some merchandise planning positions and central office roles.
Macy’s—which has corporate offices in New York and Cincinnati—will have 844 stores in its system once this plan has settled and expects that these moves will save the retailer about $100 million a year.
Read more at the Chicago Tribune.