One of the USA's premier fashion retailers, Macy's, has announced to reduce corporate and management headcount by approximately 3,900. It has decided to layoff jobs as the Novel Coronavirus (COVID 19) continues to hammer sales. The company has also reduced staffing across its stores portfolio, supply chain and customer support network, which it will adjust as sales recover.
Macy's said the layoffs will save about $365 million in fiscal 2020. It will also save around $630 million on an annualized basis. The company expects pre-tax costs of around $180 million for these restructuring activities.
"COVID-19 has significantly impacted our business. While the re-opening of our stores is going well, we do anticipate a gradual recovery of business, and we are taking action to align our cost base with our anticipated lower sales," said Jeff Gennette, chairman and chief executive officer of Macy's, Inc.
"These were hard decisions as they impact many of our colleagues. I want to thank all of our colleagues - those who have been active and those on furlough - for helping us get through this difficult time, and I want to express my deep gratitude to the colleagues who are departing for their service and contributions. We look forward to welcoming back many of our furloughed colleagues the first week of July," Jeff added.
"We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward. Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company," Gennette continued.