The Macy’s Store in Peoria, Illinois was one of dozens of stores around the country that was set to close in 2016.
The corporation announced Wednesday, January 6, 2015 that they would be implementing changes to increase efficiency and save about $400 million.
Chairman and chief executive officer of Macy’s, Inc., Terry J. Lundgren, said the changes were being put in place as a response to the “disappointing 2015 sales and earnings performance…”
” Moreover, we believe we can operate more effectively with an organization that is flatter and more agile so we can pursue growth and regain market share in our core Macy’s and Bloomingdale’s omnichannel businesses faster and with more intensity,” Lundgren said.
Macy’s Inc. was operating in seven regions and 58 local districts; with the new plan, that structure was set to consolidate into five regions and 47 local districts. Staffing levels at remaining stores were set to be affected as well; of the average 150 employees at each store, three to four jobs were expected to be impacted.
In addition, about 165 senior executives at Macy’s and Bloomingdale’s Stores would be offered voluntary separation opportunities starting in the spring of 2016. Also, 600 positions from back-office organizations will be eliminated.