Macy’s Inc., the pandemic-hit American departmental store chain, which had forecasted a roughly $1 billion in operational losses over the second quarter of the year, said in a statement on Thursday that the 162-year-old Cincinnati, Ohio-based brick-and-mortar retailer would slash about 3,900 employees in management and corporate positions in order to cut expenses, as the embattled retailer appeared to be scuffling to grapple with a sweeping dwarf in demands caused by the pandemic crisis.
Apart from that, the century-old American departmental store chain, founded by a Rowland Hussey Macy back in the Autumn of 1858s, had also added on its Thursday’s statement that the company, which had roughly 123,000 workers before the onset of the pandemic outbreak, had been expecting to save $365 million in fiscal 2020 and a lump-sum of $630 million every year due to the lay offs in the management and corporate roles.
Major US retailers to echo Macy’s lead
Meanwhile, as a number of US department store chains had been witnessing a havoc-scale plunge in demands despite a reopening of the economy, adding that the struggling US retailers would likely to follow the Macy’s Inc.’s footprint in a near-future, the founder of Ithaca Wealth Management in New York, Matt Fox said following Macy’s Inc.
announcement, “Expect more layoffs akin to Macy’s to be announced in the coming months. Retailers that were struggling before the pandemic hit will re-evaluate their operations and cut jobs out of necessity to stay afloat until the economy recovers”.
Aside from that, in the wake of a withering outlook in demands, Macy’s Inc. had also been quoted saying at its statement that the departmental store chain had decided to reduce staffs at its stores, customer support networks alongside supply chains.
However, during a reopening of its flagship Manhattan store, Macy’s Inc. had told earlier this week that the company would bring bank a majority of its furloughed workers in the first week of July.