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Macy’s Consolidation Results in Layoffs of 7,000

by Terri Potratz | February 2, 2009 at 11:00 am

1429 views | 16 Recommendations | 8 comments

A press release from Macy's today outlined a consolidation plan which call for 7,000 employee layoffs. About 40% of this figure represents an the elimination of executive positions, with the remainder of the job cuts occurring in retail locations and as a result of divisional office closures.

The latest job cuts, representing about 4 percent of its work force, will affect 40 percent of its executive positions, plus more than 5,000 jobs in its roughly 850 stores. This total includes approximately 1,200 positions being added to new My Macy’s districts and regions.

Macy's expects that the corporate restructuring will reduce expenses by about $400 million per year by 2010, and allow them to survive the tough economic climate which has seen numerous retailers shutter their doors and arrange similar restructuring plans.

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Glossglamzenfly

at 13:25 on February 2nd, 2009

Having worked closely with Macy's as a vendor for several years, I'm quite surprised that they waited for the economy to arrive at the current state before taking action. Their disorganization of operations alone were a large part of why I took a break from the industry and concentrate on something new. Not to mention that they don't know their customer. I understand that the economy is effecting all retailers but they could have prevented some of this by not expanding the way they did with out the proper research.

stringTHEORY

at 14:54 on February 2nd, 2009

The Macy's layoff's do not surprise nor sadden me as I've been a long time frustrated patron of their goods. Their lack of customer service and obvious attempts at bait and switch marketing techniques makes Macy's a perfect candidate for revenue decline during a recession – as they’ve done nothing to cultivate customer loyalty.

This photo was taken in an attempt to showcase an example of grassroots, fair-trade commerce and its contribution to a more connected shopping experience as it sits against the back drop of a globalized, distributed economy and the effect that has on over-consumption + the disconnection we see between consumers and designers + craftspeople.

stringTHEORY has contributed a photo to this story.

mtammas

at 15:58 on February 2nd, 2009

Unfortunately, I think Macy's is just one in a long line of companies that will blame the economic downturn for their woes and use it as an excuse to 'restructure'. The auto industry hasn't been the only sector to completely ignore the signs of needed change and the sounds of discontented consumers.

nori127

at 20:13 on February 2nd, 2009

nori127 has contributed a photo to this story.

duo

at 22:09 on February 2nd, 2009

Are there any closing stores in Georgia, do you know? When Macy's consolidated with Rich's here, you would not believe the bargains I got! I stopped by the mall for stockings and got some beautiful pants for the price of pantyhose! My daughter and I returned to the store that weekend and filled a basket each from the bottom to overflowing at the top with clothes, undies, and househole goods, and mine was less than $200. I never want to miss a Macy's closing.

I am sorry 7,000 more people are going to lose their jobs.

Thanks for the news.

Mary

acm (not verified)

at 20:10 on February 3rd, 2009

Mary, What are you thinking posting that on this blog. Did you think people care about your purchases at a store closing? Why are you reminiscing about purchasing stockings, clothes, "undies" and household goods for $200 when people are getting laid off?

Hope that you or your loved ones don't get laid off in this terrible economy!

Rolo Pics

at 14:13 on February 4th, 2009

Xmas shopping @ Macy's NYC .....
Very very crowded ... did anyone mention economic crisis ;) !

Rolo Pics has contributed a photo to this story.

RBO (not verified)

at 06:32 on February 10th, 2009

I happen to be one of the executives affected by this restructure and would have to say i agree with lots of your comments, but not only are we cutting 7,000 job's we are cutting back on orders and in every aspect of our operations wich then results in more job cuts at companys that we have relationships with. so that 7,000 is really more like 10-12,000 job's. My heart goes out to all of the people involved. This is not something i would wish on anyone!