Macy’s Plans to Slash Jobs After Sales Tumble More Than Forecast

NEW YORK, United States — Macy's Inc., the largest department-store company in the U.S., announced plans to fire or relocate about 3,000 workers after suffering a worse holiday period than it predicted.

The company is cutting staffing levels and shrinking its store count to match the lower sales volume, according to a statement on Wednesday. The changes will affect three to four workers at each of about 770 Macy’s and Bloomingdale’s stores, though half of those employees are expected to be offered other jobs.

The move follows a same-store sales decline of 4.7 percent in November and December, reflecting a dismal holiday season for department stores. The company had expected a drop of 2 percent to 3 percent. Warm weather in much of the U.S. took a toll on sales of winter clothing, Chief Executive Officer Terry Lundgren said.

“We were particularly disadvantaged by the historically warm weather in northern climate zones where both Macy’s and Bloomingdale’s are especially well-represented,” he said in the statement. “We also continued to feel the impact of lower spending by international tourists as the value of the dollar remained strong.”

By Nick Turner; editor: John Lear.