Macy's decides to cut 2,500 jobs and close five stores

By Kyle Johnson,

Retailer Macy's announced on Wednesday that 2,500 jobs were being cut amid the company's attempt to save about $100 million a year.

The retailer also will be closing several stores and working on making organizational changes, reports Forbes. In a statement, CEO Terry Lundgren noted that the cost saving initiatives would help the company to "maximize the impact of the exceptional talent" Macy's still has.

After shedding a small portion of its workforce, Macy's plans to remain at around 175,000 employees. With the aim to save money it would appear the company was struggling, but rather its sales during November and December was actually up 4.8 percent over the prior year.

According to BBC News, five states will see one store close, including Arizona, Utah, Missouri, New York and Kansas. Since the restructuring announcement, Macy's stock has actually risen more than 5 percent.

The holiday season didn't do as well as retailers, on the whole, had hoped. Sales growth was at only 2.7 percent, which is the lowest in the past four years.

image: Wikimedia Commons

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