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Cost Reduction Initiatives Lead to Macys Layoffs
CINCINNATI (WKRC) -- Macy's Inc. has announced it will focus on cost reductions and organizational changes in an effort to sustain profitable sales growth in coming years.
Changes include the layoff of approximately 2,500 employees and the closing of five Macy's locations starting as early as January 12th.
Macy's Chairman, President and Chief Executive Officer, Terry J. Lundgren, said in a press release Wednesday, "Our company has significantly increased sales and profitability over the past four years, and we have created a culture of growth at Macy's, Inc. We began five years ago with a set of business strategies that were largely untested by a national retailer of our size and scope. As the success of these strategies has unfolded, we have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the needs of our customers."
Lundgren says the actions being taken reinforce focus on continuous improvement and will help the company to maximize their talents.
Changes announced Wednesday will generate and estimated savings of 100 million dollars per year starting 2014.