The cost-cutting initiative has been deployed after the retail giant announced a 45% slump in its Q1 sales
Retail giant Macy’s is cutting its management and corporate teams by almost 4,000.
The announcement comes as the business begins a major restructure in order to offset the impact of decreased sales, due to the coronavirus pandemic.
The retail firm reported a 45% dip in its Q1 sales for the 13-week period ending 2 May, and hopes the decision to reduce staffing will save the business around US$365m.
In addition to the reduced corporate headcount, Macy’s is cutting roles across its stores, supply chain and customer support network, a move that is expected to be adjusted when sales pick up.
“Covid-19 has significantly impacted our business,” said Macy’s CEO and Chair, Jeff Gennette.
“While the reopening of our stores is going well, we do anticipate a gradual recovery of business and we are taking action to align our cost base with our anticipated lower sales.”
The news comes during an unsettled month for the retail sector, which has seen many other major players announce redundancies and shutter stores for good.
“These were hard decisions as they impact many of our colleagues,” added Gennette.
“I want to thank all of our colleagues, those who have been active and those on furlough, for helping us get through this difficult time, and I want to express my deep gratitude to the colleagues who are departing for their service and contributions.”
Macy’s brought back some of its furloughed staff this month.