In a bid to generate profits and turn around its fortunes, Macy’s has announced it will adopt a massive USD 1.25 billion cost cutting plan that will see 125 of its stores getting shut down with 2,000 employees being off-boarded. The stores closures even includes the closure of Macy’s’ joint headquarters in Cincinnati. The 2,000 jobs that are being axed are from the corporate and support function wing of the company. As per the company’s statement, the stores that are planned to be closed account for total annual sales of worth almost USD 1.4 billion. The complete process of 125 store closures is expected to be completed in the next three years.
According to the statement from Macy reported by the Financial Times, the stores that are included in the closures list are the ones with least productivity and around 30 of those 125 listed stores are already under the process of being shut down. The company also stated that the company will operate from a single headquarter in New York City shutting down all other headquarters including the ones in Cincinnati, San Francisco, and even the corporate office in Ohio. The money saved by shutting down these stores will be used to renovate and upgrade around 100 stores across the country. Macy’s has already upgraded around 150 stores of late. The announcement meant that Macy’s shares were up 0.6 per cent in the after-hour trading on Tuesday.
Talking about cost-cutting, Uber, suffering from heavy losses through the past few quarters, is also expected to cut down its workforce and focus more on the sectors that are generating sizeable profits for the company. Since the company went public back in May 2019, the company has only recorded losses, USD 7.4 billion in total across three quarters.