CINCINNATI Rocked by weak holiday sales and facing a critical spring 2008 fashion season, Macy's on Wednesday moved to cut costs by announcing it will lay off hundreds of employees as it restructures.
Macy's Inc., a Cincinnati-based retailer with 850 Macy's and Bloomingdale's stores as well as a surging online arm in Macys.com, may lay off as many as 2,300 employees for an annual savings projected at $100 million. Macy's has five stores in Utah.
The company said it plans to eliminate three regional divisions and create a new district structure that could add 250 jobs in local markets.
"That will double the number of managerial individuals in local markets," spokesman Jim Sluzewski said. "We will have more people who are focused on each individual store to make sure the merchandise is correct and that we have the right sizes, colors, brands and events in every store."
Called My Macy's, the localization initiative creates 20 districts of about 10 stores each.
Job losses will occur when Macy's consolidates its Minneapolis-based Macy's North into the New York-based Macy's East, its St. Louis-based Macy's Midwest into Atlanta-based Macy's South and its Seattle-based Macy's Northwest into Macy's West. The Atlanta-based division will be renamed Macy's Central.
The company also said Wednesday that same-store, year-to-year sales for the final four weeks of fiscal 2007 fell 7.1 percent compared with 2006 revenues. For the 13-week fourth quarter of 2007, Macy's sales were $8.59 billion, down 6.1 percent from $9.16 billion reported for the same period in 2006.
Macy's shares fell $1.16, or almost 5 percent, to $23.94 in trading Wednesday.