Macy’s, the 551-store chain that skirted bankruptcy in June by lining up $4.5 billion in new financing, will fire 25 percent of its corporate-level workforce, or about 3,900 people.
The cuts will save the company an estimated $365 million this year and about $630 million annually in the future.
The retailer will invest about $180 million to restructure aspects of its business and will show much of that cost in this quarter’s financial report.
The company’s share price lost 3 percent on the news. Macy’s stock price has fallen about 60 percent so far this year.
This week, Macy’s will report first-quarter earnings that will show an operating loss of between $905 million and $1.1 billion, compared to $203 million in net income a year previous.
“We know that we will be a smaller company for the foreseeable future,” said CEO Jeff Gennette, “and our cost base will continue to reflect that moving forward.”
