The department store chain said it expects to save about $365 million in fiscal 2020 as a result of the layoffs.

The department store operator forecast first-quarter sales between $3 billion to $3.03 billion, down from $5.50 billion a year earlier.

The positive results follow the department store's announcement that it will close several offices and stores to cut costs and boost growth.

The department store chain posted a 3.5 percent decline in same-store sales for Q3, compared to the 1 percent drop analysts had expected.

As the retailer spends heavily on remodelling stores and building online businesses, targeted promotions and better pricing have projected large savings in the next two to four years.

Chief Executive Jeff Gennette said looming US tariffs will reduce per-share profits by a maximum of five cents and assures it is not a big impact.

The grooming business increased sales by 4 percent, shoring up a key area of concern for the company that had failed to keep pace with other units.

The beauty business saw a 9 percent rise in organic sales, helped by the premium SK-II brand.