Economy

Macy's Announces Restructuring To Address Sales Impact From The Pandemic

Macy's Announces Restructuring To Address Sales Impact From The Pandemic”

Macy's Inc said on Thursday it would lay off about 3,900 employees in corporate and management positions as US businesses try to save cash in the face of dwindling demand caused by the COVID-19 pandemic. This includes store closures from March 18th to May 4th, 2020 and the company's gradual reopening.

For fiscal 2020, the company expects pre-tax costs of about $180 million for these restructuring activities, the majority of which will be recorded in the second quarter and all of which will be in cash.

The retailer will also reduce its workforce throughout its stores, supply chain, and customer support network because of a dip in sales because of the coronavirus pandemic.

The company, which reopened its flagship Manhattan store on Monday, said it would bring back most of its remaining furloughed employees in the first week of July. The company previously announced cost-cutting measures that were created to save an estimated $1.5 billion by the end of 2022. "These were being challenging decisions as they affect numerous of our colleagues".

More news: Sacha Baron Cohen Pranks Conservative Rally Into Singing Racist Lyrics

"We know that we will be a smaller sized enterprise for the foreseeable potential, and our price tag base will carry on to replicate that going ahead", Gennette claimed. "Our lower expense base integrated with the approximately $4.5 billion in brand-new financing will likewise make us a more stable, flexible company", Gennette said on Thursday.

Macy's latest announcement, analysts say, shows that retail job cuts - which until now had been largely concentrated among store employees and hourly workers - are beginning to reach white-collar positions in office buildings.

Investors, however, are still concerned about Macy's future and sent the stock lower in Thursday trade.

"Macy's is doing what it can to quickly cut costs - which, in this case, means cutting corporate jobs", Saunders said.



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