After a rough holiday season failed to turn things around, many major retailers are continuing to struggle in 2017. Following the announcement by Sears that it would close an additional 150 stores this year, Macy's just announced changes of its own that will affect over 10,000 employees.
In a move to cut costs, Macy's will be "restructuring its central organization with a focus on eliminating layers of management," which translates into the layoffs of about 6,200 employees. In addition, the retailer announced the closure of 68 stores, three of which were closed by mid-2016; 63 more will be closed by spring, and another two by the end of summer. They are part of the 100 store closures, which were announced in August. The company estimates these closures will affect around 3,900 retail employees, bringing the total number of layoffs up to around 10,100.
Macy's estimates these moves will save about $550 million, which it plans to invest in digital efforts as well as the continued expansion of Bluemercury and Macy's Backstage, its off-price chain. This time last year, Macy's announced it would be laying off some 4,350 employees, 3,000 of which were retail associates. This certainly doesn't bode well for the future of department stores, despite their many attempts to stay relevant — especially among millennial shoppers — in 2016.