February 2, 2009

Macy’s to cut 7,000 jobs in restructuring

U.S. retail giant Macy's said it would cut about 7,000 jobs and restructure the organization to increase sales and profits.

The company said it would cut 4 percent of its workforce of about 180,000, but its restructuring plan would then add 1,200 new positions, including at least 23 in each of 49 new districts the company will create.

The company created a My Macy's organizational chart comprised of 20 districts in the spring of 2008. In a statement, the company said it would expand that to 69 districts, each a grouping of 10-12 stores with local personnel to help central planning and buying executives to understand and act on the needs of local customers.

The districts will be then be grouped into eight regions with headquarters based in Chicago, Houston, Miami, Los Angeles, New York, Pittsburgh, San Francisco and Washington.

New York will serve as the center for the company's buying, merchandising, and marketing, while Cincinnati will house the company's finance, human resources, legal and property development divisions, the company said.