Macy’s Business Takes a Dive; Cuts 4,000 Jobs Due to the Pandemic

Macy’s to slash 3,900 corporate jobs and furlough more store employees

Macy's (NYSE:M) announced Thursday it is laying off 3,900 corporate jobs in a move to cut costs as its business has been hurt by the coronavirus pandemic.

Photo (c) J. Michael Jones - Getty ImagesIn an effort to mitigate the financial toll of the coronavirus pandemic, Macy's is cutting almost 4,000 corporate and management jobs, or around 3 percent of its workforce. This includes store closures from March 18th to May 4th, 2020 and the company's gradual reopening.

The COVID-19 pandemic has led to a number of bankruptcy filings in the retail sector.

Aside from that, in the wake of a withering outlook in demands, Macy's Inc. had also been quoted saying at its statement that the departmental store chain had chose to reduce staffs at its stores, customer support networks alongside supply chains. "While the reopening of our stores is going well, we do anticipate a gradual recovery of business".

Back in February, the retailer unveiled a major restructuring involving store closings and personnel cuts, which are anticipated yielding $1.5 billion in annual savings by 2022. "These were hard decisions as they impact many of our colleagues".

"We know that we will be a smaller sized enterprise for the foreseeable potential, and our price tag base will carry on to replicate that going ahead", Gennette claimed. Macy's, Inc.is headquartered in New York, New York. Macy's has also obtained about $4.5 billion in financing that Gennette said would make it "a more stable, flexible company".

The department store chain, which had about 123,000 employees at the end of January, said it expects to save about $365 million in fiscal 2020 and about $630 million every year as a result of the layoffs.

Macy's had in May warned of almost $1 billion in operating losses in its first quarter and said it would turn into a "smaller company".

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