Thread regarding Macy's Inc. layoffs

Wall Street Journal Article - 40% Staff Reductions in Neighborhood Stores

Take a look at the Wall Street Journal article published today titled " Macy's Radical Plan to Save Itself: Shrink". In the article, the Journal interviews CEO Jeff Gennette who describes in detail how of the 653 Macy's stores, 350 will become growth Magnet locations, while the remaining profitable but non Magnet buildings will be converted into smaller format stores called "Neighborhood" Macy's.

According to the article, the smaller format stores will have 40% less staffing than they do today. If the non magnet stores average 100 employees, we can expect Macy's to shed somewhere in the neighborhood of 12,000 associate jobs. This is a best case scenario that assumes zero store closures, just the conversion of the remaining 303 non-magnet locations to the smaller format. If the goal is to reduce staffing by 40%, these locations will need 40% less leadership, so perhaps another 1000 managers reductions.

On a more positive note, the Magnet stores will see a 15% increase in staffing according to the article, so some of the displaced associates and managers from neighborhood stores in close proximity may be able to transfer.

No one seemed to be aware of the strategy outlined by Jeff in the article prior to today. It doesn't seem like the best way for the company which has always been employee centric to share what looks to be a significant cultural shift that is likely to impact so many, especially the week before Thanksgiving.

Best of luck to Macy's colleagues who may be impacted by these changes.

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| 1805 views | | 3 replies (last January 8, 2019) | Reply
Post ID: @OP+W8NZEMS

3 replies (most recent on top)

Growth stores will help to put 'neighborhood" stores in the same market out of business. Why go to a bare bones c-ap store when you can drive 10 more miles to a lavish and well stocked location with help everywhere? If you aren't in a Growth 50 or Growth 100 store, get ready to say goodbye to your store and your job. This will fail.

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Post ID: @Tevr+W8NZEMS

Hmmm, maybe this explains the IntergeTed workforce pilot. Stores in close proximity allow associates to pick up open shifts at the other store if they want more hours. My store is part of this pilot. Been in effect a few months and so far not one colleague from the pilot departments… from either store has… has participated in this.

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Post ID: @3jbs+W8NZEMS

Macy's customers have been complaining for years about how hard it is to find an associate for help. Then they go with the scan and pay . Now this. Jeff and Hal are not even aware of what their customers want, or most likely don't want to listen. All to line their own pockets.

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Post ID: @2exq+W8NZEMS

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