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It's also reducing staffing across its stores, supply chain and customer support network, the company announced Thursday, June 25.
Macy's says it will adjust staffing as sales rebound.
“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,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “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. We look forward to welcoming back many of our furloughed colleagues the first week of July.”
The company expects the cuts will generate expense savings of approximately $365 million in fiscal 2020 and approximately $630 million on an annualized basis.
“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. "Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company."
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