Macy's will lay off around 2,350 employees starting Jan. 26, equivalent to 3.5% of its workforce. In addition, the department store chain will close five of its stores, according to The Wall Street Journal.
Adapting to increased online shopping in the new digital era is the main reason that led Macy's to cut staff and close stores, as a company spokesperson explained to CNN:
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 communicated its decision to the affected employees through a statement sent Thursday. Macy's clarified that they will subcontract third parties to replace some functions. In addition, they will automate several parts of the company, further embracing the new technological era.
This news comes just over a month after the retail giant received an offer from a group of investors, which included Arkhouse Management and Brigade Capital Management, among others, to buy all of its stores for $5.8 billion.
