Macy's Is Cutting Jobs and Closing Locations Amid a Leadership Shakeup — Is Your Local Store on the Chopping Block? The retail giant is laying off approximately 2,350 corporate employees.

By Amanda Breen

Key Takeaways

  • Macy's will shutter five store locations and introduce more automation in supply chains.
  • The changes align with consumer research and incoming CEO Tony Spring's new leadership.
entrepreneur daily

Macy's Inc. is making some major changes to its leadership and operations in 2024.

The department-store chain is laying off around 2,350 corporate staff members — 13% of its corporate workforce — and closing five locations in an attempt to streamline costs and refocus resources on enhancing the consumer shopping journey, The Wall Street Journal reported.

Related: Target to Cut Thousands of Jobs as It Seeks to Trim Costs by $2 Billion

Macy's overall workforce will see a 3.5% reduction, excluding seasonal hires, as the company looks to introduce more automation to its supply-chain operations and outsource some roles to third-party providers. Additionally, tiers of management will be reduced to improve efficiency.

The department-store behemoth, also the parent company to Bloomingdale's and Bluemercury, plans substantial investments in customer-facing areas. Soon, Macy's stores will feature more visual display managers to boost store aesthetics and digital improvements for a smoother online shopping experience, per the report.

This reorganization comes ahead of Tony Spring's ascension to CEO, succeeding Jeff Gennette next month. Macy's faces not just transitional leadership but also considerable pressure from activist investors who have publicized a $5.8 billion takeover offer.

"The buyout group is undoubtedly interested in Macy's large real estate portfolio, which has attracted activists and potential buyers in the past," Morningstar analyst David Swartz said in a note reported by Reuters.

According to JPMorgan analysts, Macy's total real estate value is estimated at approximately $8.5 billion, or $31 per share, including its Herald Square property worth about $3 billion, per the outlet.

Related: The Full List of Major U.S. Companies Slashing Staff Next Year, from Nike to Intel

While Macy's has not publicly addressed the buyout bid, more details on its new strategy are expected in the coming weeks, per WSJ.

The changes will take effect on January 26 and include the sales of two furniture locations and store closures in Ballston Quarter, Arlington, Virginia; Bayfair Center, San Leandro, California; Kukui Grove Center, Lihue, Hawaii; Simi Valley Town Center, Simi Valley, California; and Governor's Square, Tallahassee, Florida.

The wave of layoffs at Macy's is part of a broader trend witnessed in early 2024, with peers such as Google, Amazon, and Citigroup also streamlining their workforce. However, this occurs against a backdrop of a potential "soft landing" for the U.S. economy, as inflation shows signs of easing, and sectors like retail continue to demonstrate growth — albeit at a moderate pace compared to pre-Covid patterns, according to the outlet.

Amanda Breen

Entrepreneur Staff

Features Writer

Amanda Breen is a features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Business News

He 'Accidentally Discovered' a Semi-Passive Side Hustle in College — Now He's on Track to Make More Than $500,000 This Year

When a lack of funding put a stop to Zach Downey's pizza vending machines, he stumbled upon another lucrative idea.

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Apple Faces Class Action Lawsuit Over iCloud's Alleged 'Enormous Structural Advantage'

The lawsuit asserts that cloud storage on iPhones would be "better, safer, cheaper, and more prevalent" without Apple's policies.

Business News

Here's How Much Amazon's Typical Customer Makes, Plus How Much They Spend on the Platform Per Year

A retail snapshot from data company Numerator paints a picture of who shops at Amazon and where they usually spend their money.

Business News

The Infamous Diner Booth from 'The Sopranos' Finale Is Up for Auction — And Some Fans Are Livid: 'Let Future Generations Enjoy'

The booth is still in the restaurant and ice cream shop in New Jersey where the finale was filmed.