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Macy's cuts corporate headcount by 3,900 as virus takes toll

Macy's cuts corporate headcount by 3,900 as virus takes toll
Posted at 1:05 PM, Jun 25, 2020
and last updated 2020-06-25 13:05:45-04

NEW YORK (AP) — Macy’s said Thursday that it’s laying off 3,900 corporate staffers, roughly 3% of its overall workforce, as the pandemic takes a financial toll on the retailer's sales and profits.

The headcount reduction will save the department store chain $630 million per year.

Like many of its non-essential peers, Macy’s was forced to close its physical stores to curb the spread of the coronavirus, evaporating sales.

Since early May, Macy’s has been gradually reopening its stores, which had been closed since March 18.

The New York-based company furloughed a majority of its workers as the pandemic took hold in the U.S. However, it was announced Thursday that most remaining furloughed employees would be returning to work starting July 5.

Macy’s CEO Jeff Gennette has said that customers are coming back, but it needs to cut costs to readjust its business to a new climate.

“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 Gennette. “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.”