Macy’s Inc. is laying off about 3.5% of its workforce ahead of the departure of longtime Chief Executive Officer Jeff Gennette, as the department-store operator retrenches amid lower demand.
The company said the cuts include about 2,350 employees, mostly in corporate positions. It will also close five stores.
“As we prepare to deploy a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce,” a company spokesperson said in an email.
When consumers’ preferences have changed and online retailers are gaining ground on department stores in important product categories like clothing and home goods, Macy’s has found it difficult to compete. With the exception of the recovery phase that followed the pandemic limitations, the corporation has reported a string of yearly revenue reductions in recent years. This has put more strain on the business and prompted Brigade Capital Management and Arkhouse Management to make a US $ 5.8 billion takeover offer.
With her retirement in February, Gennette will hand over the reins to Tony Spring, an executive at Macy’s.
