Bloomingdale’s unleashed a round of layoffs on Tuesday involving several dozen workers, sources told WWD.
Tuesday’s cutback is part of a larger restructuring plan involving both the Macy’s and Bloomingdale’s divisions of Macy’s Inc., which will be disclosed at the investors’ meeting scheduled for Feb. 5 in New York. It is believed that personnel cuts and store closings are on tap.
“There’s more to come,” said one source who discussed Tuesday’s cutback at Bloomingdale’s.
Macy’s Inc. had no comment on the precise number of Bloomingdale’s workers that were let go this week. One source said approximately 70 positions were eliminated, including some that were filled and others that were presently vacant. Other sources placed the affected headcount as higher. Another industry source said junior executives and digital merchants were among those informed that their positions had been cut.
“In order to set Bloomingdale’s up for further success, we are implementing a number of changes in our organizational structure,” a Macy’s Inc. spokeswoman said in a statement Tuesday. “This includes reducing some headcount, as well as aligning teams and resources around our most important strategies. We have had to make some difficult decisions related to our people. Communications with those being impacted are taking place.”
Bloomingdale’s timed its cutback with its move to Long Island City in Queens, N.Y. this month into The Jacx, a massive new 1.2 million-square-foot office development on Jackson Avenue, referred to as a campus. Bloomingdale’s is relocating all its New York City-based corporate and support colleagues to Long Island City, involving about 1,000 employees. It is believed that some top executives will maintain offices at the 59th Street flagship in Manhattan.
Macy’s will move some functions as well to The Jacx. Macy’s Herald Square is developing plans to have a tower constructed above its Herald Square flagship, which is seen having minimal impact on the store and its offices there.
Macy’s has approximately 130,000 employees in total. Last month, Hal Lawton, the president of the Macy’s brand, abruptly left after just two years on the job to become chief executive officer of Tractor Supply Inc.
The $25 billion Macy’s Inc. has been under pressure to improve both its top and bottom lines. The stock price has been depressed and closed at $17.67, up 3.3 percent, on Tuesday. Over the last several days, there has been a swirl of reports regarding Macy’s closings as well as some more upbeat reports on Macy’s holiday performance being better than expected, with the company exerting control over inventories and price promotions.
Macy’s Inc. operates approximately 680 department stores and more than 190 specialty stores in 43 states under the nameplates Macy’s, Bloomingdale’s, Bluemercury, Bloomingdale’s the Outlet and Macy’s Backstage.
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