Macy’s (NYSE:M) on Thursday said it will cut about 3.5% of its workforce and close five of its namesake mall locations as the legacy department store moves to trim costs and turn around slowing sales.
The move will affect approximately 2,350 positions across its corporate office and stores, company spokesman Chris Grams said.
“As we prepare to deploy a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company,” the company said.
The company notified employees about the layoffs on Thursday and the last day for affected employees will be Jan. 26.
Stores that will be shuttered are located in Arlington, Virginia; San Leandro, California; Lihue, Hawaii; Simi Valley, California and Tallahassee, Florida. The stores will close in early 2024, Grams added.
Macy’s is the middle of an effort to turn the roughly 166-year-old department store into a brand that resonates with consumers who are shopping online; looking for value; and turning to competitors including e-commerce retailers such as Amazon and Shein, big-box players such as Target and off-price names such as TJX-owned T.J. Maxx instead of its stores.
M shares slipped 63 cents, or 3.5%, to begin trading Friday at $17.30.