Macy's To Fire 2,350 Employees, Close 5 Stores: Report

Leading department store chain Macy's could lay off 2,350 employees and close five stores in a bid to cut costs, according to a report in Wall Street Journal (WSJ). The job cuts will be 3.5 per cent of Macy's overall workforce, excluding seasonal hires, the outlet further said, citing an internal memo sent to employees on Thursday. The overall plan is to fire 13 per cent of the corporate staff and redirect the money saved to improve shopping experience for customers.

This includes adding more automation to its supply chain and outsourcing some role, but Macy's hasn't specify which jobs, the WSJ report further said.

Fresh investments will include adding more visual display managers to enhance the look of stores and upgrading digital functions to make online shopping more seamless, a person familiar with the development told the outlet.

The report comes a month before Macy's President Tony Spring takes over as CEO from Jeff Gennette. The company is also facing pressure from investors who have launched a $5.8 billion bid to buy the department store chain.

"Despite our strong and tangible progress over the last few years, we remain under pressure," Mr Gennette said in the memo accessed by WSJ. He informed the employees that the move is a response to nearly a year of consumer research.

The company also owns Bloomingdale's department stores and Bluemercury beauty and skin-care shops. Macy's has not said anything officially, but is expected to provide a response in coming weeks.

Macy's is the latest to join the list of companies that have announced job cuts this year. Sundar Pichai, the CEO of tech giant Google, told employees to expect more job cuts, a week after announcing lay-offs in its Voice Assistant units, hardware teams responsible for Pixel, Nest and Fitbit, advertising sales team, as well as in its augmented reality team.

Mr Pichai said the lay-offs were focused on removing layers to simplify execution and drive velocity in some areas, according to The Verge.

A Reuters report said that tech firms, including Google and Amazon, have let go more than 7,500 employees so far in January.