NEW YORK (1010 WINS) -- Macy's announced on Thursday it will slash an additional 3,900 corporate employees and management roles as it attempts to bounce back from nationwide coronavirus lockdowns.
The details of the restructuring will align its cost base as it recovers from the impact of the COVID-19 pandemic, including the closure of stores from March 18 through May 4, 2020 and gradual re-opening.
"COVID-19 has significantly impacted our business. While the re-opening of our stores is going well, we do anticipate a gradual recovery of business, and we are taking action to align our cost base with our anticipated lower sales," Chief Executive Jeff Gennette said in a statement.
"We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward," Gennette adds.
According to a statement from the department store, it anticipates to create approximately $630 million per year in savings and added that most furloughed workers will be asked to return to their jobs starting in early July.
"These were hard decisions as they impact many of our colleagues," Gennette said.
Deemed non-essential, Macy's was forced to close its stores in an attempt to slow the spread of the coronavirus and earlier this year, it received $4.5 billion in new financing to cover the impact of the pandemic on its net earnings.
