Macy's will cut around 3,900 corporate and management jobs to control costs in an effort to sail through the long-term effects of the COVID-19 pandemic on the reeling retail sector.

The company expects the actions announced today to generate expense savings of approximately $365 million in fiscal 2020 and approximately $630 million on an annualized basis. These savings will be additive to the anticipated $1.5 billion in annual expense savings announced in February, which the company expects to fully realize by year-end 2022.

 “COVID-19 has significantly impacted our business. While the re-opening of our stores is going well, we do anticipate a gradual recovery of the business, and we are taking action to align our cost base with our anticipated lower sales,” said Jeff Gennette, Chairman and Chief Executive Officer of Macy’s.

‘’These were hard decisions as they impact many of our colleagues. I want to thank all of our colleagues – those who have been active and those on furlough – for helping us get through this difficult time, and I want to express my deep gratitude to the colleagues who are departing for their service and contributions, Jeff adds”.

Gennette also said the company will start bringing back many of its furloughed employees during the first week of July.

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