In conjunction with restructuring store operations, Macy’s Inc. last week announced that it will lay off more than 10,100 employees and expand its Westfield Century City, Los Angeles, store (a 155,000 square-foot store to open in spring 2017; Macy’s previously operated a 136,000 square-foot store in this location which closed in January 2016).
The action includes the closing of 100 stores (of its 730 locations) around the nation initially announced in August 2016.
The actions will also generate an estimated annual expense savings of approximately $550 million, beginning in 2017, enabling the company to invest an additional $250 million in growing the digital business, store-related growth strategies, Bluemercury, Macy’s Backstage and China. These savings, combined with savings from initiatives implemented in early 2016, exceed the $500 million goal communicated in fall of 2015, one year earlier than expected.
Macy’s said that as part of its plan, full- and part-time employees will be transferred to other locations where possible.