Macy's announced this week that it will cut thousands of jobs as it slashed its profit outlook after disappointing holiday sales, which saw a 4.7% decline in November and December year-over-year, reports RTT News. Earnings per share for 2015 now are expected to range from $3.85 to $3.90, compared with previous guidance ranging from $4.20 to $4.30. However, the earning guidance for 2015 included an expected $250M gain for Macy's due to the sale of its Downtown Brooklyn real estate.
The retailer plans to cut expenses by $400M this year by adjusting staff levels, impacting 3,000 associates at both Macy's and Bloomingdale's (50% of those affected employees are expected to be placed in other positions); implementing a buyout for 165 executives; reducing 600 back-office positions; consolidating four credit and customer services centers into three, closing its St. Louis center; and closing 40 of its 770 Macy's stores, with 36 shuttering early this year.
The only New York stores impacted are Upstate and in the Hudson Valley. [RTT]
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