MACY'S LAYOFFS JOB CUT: MACYS to lay off 7000 jobs

Macys job layoff
Macy's department store chain has decided to cut 7000 jobs. Macy's employees over 180,000 people and 7,000 jobs accounts for about 4% of its total workforce. The job cuts will include positions in office, stores and other locations. It is learned that Macys laid off jobs today at about 850 stores simultaneously.

Macys Job LayoffReasons for Macy Job Layoff
The main reason for job layoffs by Macy Inc. is ofcourse the slowdown in sales and the overall impact of recession on retail industry. Last month, Circuit city, an electronic retailer had to be closed down completely. Retail industry is facing a hard time.
NYT:
Macy's anticipates the reductions and other actions will lower its selling, general and administrative expenses by about $400 million annually starting in 2010.

Implications of Macys Layoff for Investors
Macys has slash the dividends by 4%. The stock has already fallen 11% as I write this post owing to bad outlook for retail industry in general. Although the above job layoffs announced by Macy should come as a welcome move for investor's, the stock is likely to see more downward movement as rising unemployment make things worse in 2009.

In case you have more information about Macys Layoff, please take a moment to share it in a comment.

Feb 3, 2009

3 comments:

Anonymous February 3, 2009 at 4:43 AM  

Here is a link to the NY Post article about the reshuffling of Macy's regional buying offices, laying off a net of about 7,000 jobs.

http://www.nypost.com/seven/01312009/business/macys_reshuffle_could_cost_thousands_of__152844.htm

Anonymous February 3, 2009 at 5:45 PM  

The 'local unverified' information contained in the post you lined to is over a year old, if you really read the comment - the date of the info is right there with the comment. I'm sure by now it can be pretty much verified since it happened over a year ago, but isn't relevant to the post about the current situation.

iinvestor February 3, 2009 at 11:00 PM  

thanks for pointing out- correction made. actually by unverified i had meant unverified or not carefully read by myself.

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