Macy’s Cuts 7,000 Jobs as Part of Company’s Restructuring Plan

By wmadministrator

Macy’s Inc. has announced that it will eliminate 7,000 positions as part of a companywide restructuring plan designed to increase sales, reduce duplication and boost efficiency.

The jobs cuts reflect approximately 4 percent of the Cincinnati-based company’s 180,000-member workforce.

While the Macy’s restructuring comes amid a deepening U.S. recession that has many other companies taking the same measures, Macy’s executives say their most recent action is actually the final phase of a strategy that began over a year ago. Last year, the company launched a pilot program to test a more customer-centric approach in 20 select geographic markets. With the success of that initiative, the company is taking its My Macy’s program nationwide, meaning that stores and merchandise assortments will be more focused on local customer needs and preferences as opposed to being regionalized.

“With our new structure, Macy’s now will have one unified buying organization, one unified merchandise planning organization, one unified stores organization, one unified marketing organization and one unified organization for each corporate function such as finance, logistics, information technology and human resources – instead of four of each operating divisionally,” said Macy’s President and CEO Terry J. Lundgren. “By reducing duplication, we will be able to react faster to market trends, simplify our relationship with vendors and ensure that our expense dollars are devoted to activities that will drive the business most effectively.”

The company’s Bloomingdale’s operations will remain a separate brand and organization and will not be affected by the restructuring.Macy’s Inc. has announced that it will eliminate 7,000 positions as part of a companywide restructuring plan designed to increase sales, reduce duplication and boost efficiency.

The jobs cuts reflect approximately 4 percent of the Cincinnati-based company’s 180,000-member workforce.

While the Macy’s restructuring comes amid a deepening U.S. recession that has many other companies taking the same measures, Macy’s executives say their most recent action is actually the final phase of a strategy that began over a year ago. Last year, the company launched a pilot program to test a more customer-centric approach in 20 select geographic markets. With the success of that initiative, the company is taking its My Macy’s program nationwide, meaning that stores and merchandise assortments will be more focused on local customer needs and preferences as opposed to being regionalized.

“With our new structure, Macy’s now will have one unified buying organization, one unified merchandise planning organization, one unified stores organization, one unified marketing organization and one unified organization for each corporate function such as finance, logistics, information technology and human resources – instead of four of each operating divisionally,” said Macy’s President and CEO Terry J. Lundgren. “By reducing duplication, we will be able to react faster to market trends, simplify our relationship with vendors and ensure that our expense dollars are devoted to activities that will drive the business most effectively.”

The company’s Bloomingdale’s operations will remain a separate brand and organization and will not be affected by the restructuring.

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