Name: Weak demand prompts Macy's to cut 3,900 jobs in push to save cash
Brand: reuters.com
SKU: reuters-com-2159
Availability: OnlineOnly

critic

Weak demand prompts Macy's to cut 3,900 jobs in push to save cash

preview

By The department store chain, which had about 123,000 employees at the end of January, said it expects to save about $365 million in fiscal 2020 and about $630 million every year as a result of the layoffs.Macy’s had in May warned of nearly $1 billion in operating losses in its first quarter and said it would turn into a “smaller company”.The job cuts come at a time when unemployment figures in the United States are already high. Rising coronavirus infections in many U.S. states including California, Texas and Florida are likely to hurt employment further as some people stay away from consumer-facing establishments.“Expect more layoffs akin to Macy’s to be announced in the coming months,” said Matt Fox, founder of Ithaca Wealth Management in New York.Slideshow “Retailers that were struggling before the pandemic hit will re-evaluate their operations and cut jobs out of necessity to stay afloat until the economy recovers.”Macy’s said it has also reduced staffing at its stores, supply chains and customer support network and would adjust their levels as sales recover.The company, which reopened its flagship Manhattan store on Monday, said it would bring back most of its remaining furloughed employees in the first week of July.It expects the layoffs to result in pre-tax charges of about $180 million in fiscal 2020.Macy’s shares were down about 2% in morning trading.Reporting by Uday Sampath in Bengaluru; Editing by Ramakrishnan M. and Arun KoyyurOur Standards:

By The department store chain, which had about 123,000 employees at the end of January, said it expects to save about $365 million in fiscal 2020 and about $630 million every year as a result of the layoffs.Macy’s had in May warned of nearly $1 billion in operating losses in its first quarter and said it would turn into a “smaller company”.The job cuts come at a time when unemployment figures in the United States are already high. Rising coronavirus infections in many U.S. states including California, Texas and Florida are likely to hurt employment further as some people stay away from...

public

Uday Sampath Kumar

Top and breaking news, pictures and videos from Reuters. For more breaking business news, follow @ReutersBiz.

reuters.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Weak demand prompts Macy's to cut 3,900 jobs in push to save cash

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS