Macy's to lay off 2,500, close stores

NEW YORK — Retailer Macy's will lay off approximately 2,500 workers as it restructures its business, it said Wednesday afternoon.

The layoffs and other cost-saving changes are expected to generate savings of about $100 million annually beginning this year, the company said in a press release.

"We have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers," CEO Terry Lundgren said in that press release.

In total, Macy's workforce is about 175,000 people.

The retailer will close five Macy's stores in early spring and open five, plus three Bloomingdale's stores. Those closing: Fiesta Mall, Mesa, Ariz.; Metcalf South Shopping Center, Overland Park, Kan.; Jamestown Mall, Florissant, Mo.; Medley Centre, Irondequoit, N.Y.; and Fashion Place Mall, Murray, Utah.

In a large organizational change, Macy's will combine its Midwest Region with its North Region to create a new North Central Region.

Macy's said Wednesday that comparable sales -- combined with comparable sales from departments licensed to third parties - rose by 4.3 percent in the 2013 holiday shopping season compared with the same period last year.

In the restructuring, some associates are being reassigned with new duties or transferred. The company said it would also continue to hire in areas such as online operations and direct-to-consumer fulfillment.

Company stock was up 5.2 percent to $54.52 per share in after-hours trading.


Store Brands: Macy's and Bloomingdale's

Number of stores: About 840, including 36 Bloomingdale's

Locations: 45 states, District of Columbia, Guam, Puerto Rico

Number of employees: About 175,000

Founded: 1858 as R.H. Macy & Co. in New York City

Headquarters: Cincinnati

New York Stock Exchange symbol: M

Source: Macy's Fact Book 2013


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