According to the Wall Street Journal, Macy's, the iconic department store chain, is shutting down five underperforming stores and letting go of approximately 2,350 employees in retail and corporate roles nationwide.
Macy's Affected Store Locations
Macy's store closures come as a significant challenge in brick-and-mortar retail outlets, where consumers turn to platforms like Amazon as their first shopping destination. The affected stores are:
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Bayfair Center, San Leandro, California
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Simi Valley Town Center, Simi Valley, California
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Governor's Square, Tallahassee, Florida
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Kukui Grove Center, Lihue, Hawaii
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Ballston Quarter, Arlington, Virginia
Macy's had 723 locations in the United States as of October 2023, including 500 Macy-branded stores, 158 Bluemercury stores, and 56 Bloomingdale stores.
Macy's Future Plans of Expanding Its Retail Footprint
Despite closing five leading stores, Macy's aims to expand its retail presence by opening 30 smaller stores in strip malls within the next two years to address declining foot traffic in mall-based stores and enhance competitiveness against significant retailers like Target and Walmart.
Macy's Workforce Reduction
When reached for comment, Macy's spokesperson mentioned the "difficult decision to reduce our workforce by 3.5% to become a more streamlined company" to address the ever-changing consumer and marketplace.
Alongside the store closures, Macy's has announced layoffs of around 2,350 employees in retail and corporate roles, representing a 3.5% reduction out of its 94,570 global workforce as of January 2023. Employees were informed about the layoffs on Thursday and were scheduled to work until January 26.
READ ALSO: Macy's Trims Costs Amid Slowing Sales, Closes Five Stores and Cut More Than 2,300 Jobs
Macy's Remains Under Pressure Despite Strong Progress
Macy's "remains under pressure" despite the solid and tangible progress over the last few years, said Macy's CEO Jeff Gennette in a memo to employees, to be succeeded by current Macy's President Tony Spring next month.
Macy's decision to shut underperforming stores and lay off employees interestingly follows just a month after activist investors revealed the acquisition intent of the company for $5.8 billion.
Macy's stock currently trades below $18 per share, significantly lower than its peak of nearly $70 per share in 2015.
Layoffs in Other Industries
Macy's joins other big companies in various sectors to recently reveal layoffs.
Google has recently undergone two layoffs within the past two weeks, cutting several hundred positions in its advertising sales, hardware, and central engineering teams. The workforce reduction also impacted employees working on Google Assistant, the company's voice-activated software product.
Amazon's live streaming platform, Twitch, revealed earlier this month that it is reducing its workforce by 35%. Additionally, Amazon is making job cuts in its Prime Video and Amazon MGM Studios divisions. Other tech companies, including Discord and Duolingo, announced layoffs at the beginning of the year.
In December, General Motors announced layoffs of 1,314 employees at two Michigan factories as part of the decision to stop vehicle production.
NBC News recently disclosed layoffs affecting several dozen employees.
RELATED ARTICLE: Job Cuts at Macy's, Retailer Struggle During Hard times, 40 Stores Closing
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