Macy’s, Inc. (NYSE: M) reported details of restructuring that will align its cost base with near term sales as the business attempts to recover from the impact of the coronavirus pandemic. This includes store closures from March 18th to May 4th, 2020 and the company’s gradual reopening. Macy’s will reduce corporate and management count by 3,900 as it has reduced staff across its stores, supply chain and customer support network to help adjust as sales recover.
“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.”
“We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward. Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company,” Gennette continued.