Macy's Becomes The Latest Department Store To Cut Jobs
Department store Macy's is feeling the fallout as shoppers buy less and malls become ghost towns. The company announced on Monday that it would be eliminating around 7,000 jobs, four percent of the company work force, over the next few months. Macy's Inc. also cut its quarterly dividend and has forecast earnings for fiscal 2009 far below Wall Street expectations. While it seems no company is optimistic about the coming retail year Macy's seems particularly pessimistic. The company will be closing 11 stores across the country. Other cost cutting measures include no raises for executives in spring 2009 and cuts in matching 401(k) contributions. Other benefits for Macy's execs including company cars, life insurance and merchandise discounts may be forthcoming. The Macy's numbers fall right between Sak's which will cut around 1,100 jobs and Neiman Marcus which plans to cut 375 jobs.
Reader Comments (Page 1 of 1)
Jason Feb 2nd 2009 11:11PM
Macy's has over 850 stores, the 11 stores being closed were the weakest performers. One of the 11 stores is in Hawaii too. Not one of their core markets. 4% of their workforce is relatively small. Macy's has a great website, a great assortment and most importantly they own or hold contracts to some of the best retail real estate in the country.
They will be fine, they are just trimming the fat.