Macy’s said it will axe 3,900 corporate employees on Thursday as it struggles to recover from coronavirus lockdowns nationwide.
The department-store giant said it has also eliminated an undisclosed number of store employees, who may be rehired as the company’s sales recover. Many furloughed workers will be asked to return to their jobs starting in July, according to a statement.
“COVID-19 has significantly impacted our business. While the re-opening of our stores is going well, we do anticipate a gradual recovery of business, and we are taking action to align our cost base with our anticipated lower sales,” Macy’s Chairman and Chief Executive Jeff Gennette said. “These were hard decisions as they impact many of our colleagues.”
The layoffs will save the company approximately $365 million in fiscal 2020 and $630 million on an annualized basis.
Earlier this year, the largest department store received $4.5 billion in new financing to cover the impact of the pandemic on its bottom line.
“We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward,” Gennette said.
Macy’s shares were recently off 3.7 percent at $6.53 in Thursday morning trading.