The logo for Macy's appears above posts on the floor of the New York Stock Exchange, . Macy's rose 2.9 percent after the department store giant said it will cut 2,000 corporate jobs and close 125 of its least productive storesFinancial Markets Wall Street Macy's, New York, USA - 05 Feb 2020

Macy’s Inc. is cutting 3,900 corporate and management jobs to save $365 million this year and about $630 million in expenses on an annual basis going forward.

Additionally, Macy’s Inc. has reduced staffing across its stores portfolio, supply chain and customer support network, which it will adjust as sales recover.

The latest cutbacks, revealed Thursday morning, represent a dramatic response to the impact of COVID-19. The company temporarily closed all of its stores on March 18 and gradually began reopening beginning May 4. Most remaining furloughed colleagues are due to begin returning to work July 5.

Back in February, the retailer unveiled a major restructuring involving store closings and personnel cuts, which are anticipated yielding $1.5 billion in annual savings by 2022.

“COVID-19 has significantly impacted our business. While the reopening of our stores is going well, we do anticipate a gradual recovery of business, and we are taking action to align our cost base with our anticipated lower sales,” said Jeff Gennette, chairman and chief executive officer of Macy’s Inc. “These were hard decisions as they impact many of our colleagues. I want to thank all of our colleagues — those who have been active and those on furlough — for helping us get through this difficult time, and I want to express my deep gratitude to the colleagues who are departing for their service and contributions. We look forward to welcoming back many of our furloughed colleagues the first week of July.

“We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward. Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company,” Gennette continued.

For fiscal 2020, the company expects pre-tax costs of about $180 million for these restructuring activities, the majority of which will be recorded in the second quarter and all of which will be in cash.