Dive Summary:

• Macy’s department store chain has announced the retailer will cut 2,500 jobs and plans to close five Macys store locations in an effort to improve operational efficiency.
• Macy’s says its current workforce of 175,000 should remain stable and the company has plans for eight new Macy’s and Bloomingdale’s stores in 2014 – helping to offset the impact of five planned store closings.
• Despite the announcement to scale back and restructure operations, the retailer also confirmed record sales revenue during the 2013 holiday shopping season.

Dive Insight:

Despite the conflicting nature of reporting record sales reports and layoffs, Macy’s re-structuring effort is centered on merging Macy’s Midwest and Northern regions into a single north central region – effectively reducing the number of districts for the company to 60 from 69. The sweeping organizational changes and accompanying job cuts will save Macy’s a reported $100 million.