Reorg, Layoffs for Macy’s

Feb 03, 2009 10:51 PM  By

Department store chain Macy’s said Monday it is cutting 7,000 jobs–about 4% of its total current workforce–in its stores, distribution centers and offices. The company is reorganizing, eliminating its Macy’s division structure and integrating all functions into a single organization.

Macy’s central buying, merchandise planning, stores senior management and marketing functions will be based in New York. Corporate functions such as finance, human resources, law, property development and purchasing will be located primarily in Cincinnati.

By the second quarter, all Macy’s stores nationwide will be grouped into 69 geographic districts that will average 10 to12 stores each. The 69 Macy’s districts will be grouped into eight regions based in the Chicago, Houston, Miami, Los Angeles, New York, Pittsburgh, San Francisco and Washington areas.

Shedding the existing divisional central office organizations will primarily affect some 1,400 positions at the Macy’s West headquarters in San Francisco, about 850 positions at the Macy’s Central headquarters in Atlanta, and approximately 600 positions at the Macy’s Florida headquarters in Miami.

The retailer does not plan to close any Macy’s and Bloomingdale’s store locations, other than the previously announced closure of 11 Macy’s stores. The Macys.com and Bloomingdales.com Websites will remain in tact.