Macy's to cut more than 2,300 jobs, about 3.5% of its workforce, and close five stores

Macy's on Thursday said it will cut about 3.5% of its workforce and close five of its namesake mall locations as the legacy department store moves to trim costs and turn around slowing sales.

The move will affect approximately 2,350 positions across its corporate office and stores, company spokesman Chris Grams said.

"As we prepare to deploy a new strategy to meet the needs of an everchanging consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company," the company said in a statement.

The company notified employees about the layoffs on Thursday and the last day for impacted employees will be Jan. 26.

Stores that will be shuttered are located in Arlington, Va.; San Leandro, Calif.; Lihue, Hawaii; Simi Valley, Calif. and Tallahassee, Fla. The stores will close in early 2024, Grams added.

Macy's is the middle of an effort to turn the roughly 166-year-old department store into a brand that resonates with consumers who are shopping online, looking for value and turning to competitors including e-commerce retailers like Amazon and Shein, big-box players like Target and off-price names like TJX-owned T.J.Maxx instead of its stores. As part of that push, Macy's is overhauling its private label brands, opening smaller shops outside of the mall and looking to its beauty chain, Bluemercury, and higher-end department store, Bloomingdale's, to drive growth.

In the fall, the company said it would open up to 30 smaller stores in strip malls over the next two years. Macy's has been better known for giant mall stores, but the company is trying to chase consumers in the suburbs who are going to outdoor shopping centers a short drive away for groceries or a new outfit.

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