Mike Mozart
The cuts, which will affect about 3% of the company's staff, excluding seasonal workers, will be carried out both among management and among ordinary employees, according to a Macy's press release. In addition, the company further reduced store staff, supply chain and customer service network employees, although it promised to return some positions as sales resume.
Macy's stores were closed from March 18 to May 4 due to restrictions imposed to curb the spread of COVID-19 coronavirus, and now the company is gradually resuming their work in the United States.
"Given that the store opening process is going well, we are looking forward to a gradual business recovery and are taking steps to align our cost base with the expected decrease in sales," Macy's CEO commented.
As of February 1, Macy's staff totaled 123 thousand people. Many employees were sent on unpaid leave. Most of them will return to jobs on July 5, the company said.
Macy's expects that the announced restructuring will provide savings of approximately $ 365 million in fiscal 2020 and approximately $ 630 million annually thereafter. The non-recurring costs associated with the restructuring are expected to be approximately $ 180 million before taxes. They will be taken into account mainly in the second quarter.
Macy's shares are down 2.4% at New York trading on Thursday. Since the beginning of the year, the company's capitalization has fallen by 60.9% and currently stands at about $ 2.1 billion.
source: cnbc.com
Macy's stores were closed from March 18 to May 4 due to restrictions imposed to curb the spread of COVID-19 coronavirus, and now the company is gradually resuming their work in the United States.
"Given that the store opening process is going well, we are looking forward to a gradual business recovery and are taking steps to align our cost base with the expected decrease in sales," Macy's CEO commented.
As of February 1, Macy's staff totaled 123 thousand people. Many employees were sent on unpaid leave. Most of them will return to jobs on July 5, the company said.
Macy's expects that the announced restructuring will provide savings of approximately $ 365 million in fiscal 2020 and approximately $ 630 million annually thereafter. The non-recurring costs associated with the restructuring are expected to be approximately $ 180 million before taxes. They will be taken into account mainly in the second quarter.
Macy's shares are down 2.4% at New York trading on Thursday. Since the beginning of the year, the company's capitalization has fallen by 60.9% and currently stands at about $ 2.1 billion.
source: cnbc.com
