The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
US department store chain Macy’s is cutting 2,350 jobs and closing five stores, as it aims to streamline its operations, a company spokesperson told Reuters on Thursday.
The layoffs make up 3.5 percent of the overall workforce across Macy’s. The company operated 722 store locations as of January 2023 and employed 94,570 full- and part-time employees, excluding seasonal hires.
The job cuts come as an investor group consisting of Arkhouse Management and Brigade Capital put pressure to take Macy’s private in a $5.8 billion offer.
Macy’s incoming CEO Tony Spring is also focussed on cutting expenses on promotions to boost margins as the company recovers from an inventory glut in 2022.
ADVERTISEMENT
Macy’s spokesperson said the layoffs were part of its plan “to deploy a new strategy to meet the needs of an everchanging consumer and marketplace.”
As the company evaluates the “right mix of on- and off-mall locations,” it intends to close five of its full-line locations this year, the spokesperson added.
The job cuts were first reported by the Wall Street Journal, which, citing a memo sent to employees, said the layoffs would occur on Jan. 26.
In November, the retailer beat analysts’ estimates for quarterly profit on lower inventories and strong demand for beauty products.
By Savyata Mishra; Editing by Maju Samuel
Learn more:
Unpacking Macy’s Surprise Buyout Offer
The department store chain’s stock surged on reports of a $5.8 billion bid. But the potential new owners may be more interested in real estate than fashion.
The online fashion retailer plans to update China’s securities regulator on the change of the initial public offering venue and file with the London Stock Exchange as soon as this month, a person with knowledge of the matter said.
The company, under siege from Arkhouse Management Co. and Brigade Capital Management, doesn’t need the activists when it can be its own, writes Andrea Felsted.
As the German sportswear giant taps surging demand for its Samba and Gazelle sneakers, it’s also taking steps to spread its bets ahead of peak interest.
A profitable, multi-trillion dollar fashion industry populated with brands that generate minimal economic and environmental waste is within our reach, argues Lawrence Lenihan.