Macy’s department store is laying off 2,500 employees and closing five stores as part of a major reorganization, the company announced it on Wednesday.
The news was welcomed warmly by the marketplace, with Macy’s shares shooting up 5.5% in after-hours trading.
The layoffs and other changes, which Macy’s estimates will save about $100 million annually, come despite strong sales in new stores and online. The company said sales at stores open for at least a year grew 3.6% in the past two months of 2013.
We were told some of the Macy’s employees will be moved to other retail stores or to the company’s online operations as part of the reorganization, the Associated Press reports.
But check this out, Macy’s will also open eight new stores…..Hmmm I don’t get that!