Macy's to slash more than 2,000 jobs

Macy's Inc's plan to shut 125 of its least productive stores over the next three years to tackle slowing mall traffic and save costs will lead to a loss of 2,000 corporate jobs.

A year ago Macy reported to have 867 stores and a total of 130,000 employees at the time.

More than a century old department store chain has been struggling with retaining existing shoppers and attracting new ones as consumers shift to online shopping. The company headquartered in Cincinnati has already closed more than 100 stores and cut thousands of jobs, since 2015.

Chief Executive Officer Jeff Gennette said, "We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams." 

As per its new cost savings strategy, it would close stores in "lower tier" malls, and explore new off-mall formats. The 125 stores targeted for closure currently account for about $1.4 billion (1.1 billion pounds) in annual sales. While the company might be able to cut back its costs and improve its revenue numbers, what happens to the thousands of employees who lose their jobs remains unknown. 

Macy's case highlights the need for businesses to proactively respond to disruptions like change in consumer preferences rapidly. The leaders have to be agile with their strategies and respond to such changing demands smartly to ensure they don't fall prey to them. Talent is most affected by these disruptions and businesses' inability to respond to these changes. How Macy's recovers from the current situation and makes it place in the market again with newer business models is something to watch out for. In this course of time, the leaders also have to ensure a smooth transition and better future of employees who might lose their job as company shuts stores. 


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