US department store chain Macy’s has said it expects to make 10,100 people Redundant
US department store chain Macy’s has said it expects to make 10,100 people redundant and save $550m (£447m) as a result of its cost-cutting programme.
It said 3,900 jobs would go in 2017 as a result of 68 store closures, out of a planned 100 announced last year.
Meanwhile, other changes and reductions in middle management roles are expected to eliminate another 6,200 jobs.
Department stores in the US have been struggling with tough competition from online retailers and discount stores.
Macy’s – which owns department store Bloomingdales – also said its profits for the year to 30 January would be lower than previously forecast.
It had expected profits to be between $3.15 and $3.40 a share, but has now cut this to $2.95-$3.10.
The revised forecast came after the store chain’s like-for-like sales in November and December saw a fall of 2.1%.
“While our sales trend is consistent with the lower end of our guidance, we had anticipated sales would be stronger,” said Macy’s chief executive, Terry Lundgren.
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