Macy's Announces Restructuring Plan
Cincinnati based Macy's has announced a restructuring plan to increase productivity which the retailer says will reduce annual expenses by $100 million.
The cost-saving measure comes as the company looks to turn around sluggish sales in its stores. In a release, Macy's says the restructuring will "reduce the complexity of the upper management structure to increase the speed of decision making, reduce costs, and respond to changing customer expectations."
In addition, the retailer says the plan will:
- Improve supply chain efficiency
- Innovate and enhance inventory management
- Build a larger, healthier customer base
Macy's anticipates the restructuring will fuel productivity over the next 3-5 years and "contribute significantly to profitable growth."
A company spokesman says 100 vice president positions would be eliminated.
According to CEO Jeff Gennette, "The steps we are announcing to further streamline our management structure will allow us to move faster, reduce costs, and be more responsive to changing customer expectations."
He says, "Importantly, these changes build the foundation we need to achieve meaningful enterprise productivity improvements. These actions impact colleagues who have made strong contributions to the company over the years, and I thank them for their service.”
The announcement comes as the company reported fourth-quarter and fiscal earnings.
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