Macy’s, one of the nation’s largest department stores chain, is set to cut back on locations, workforce, and corporate overhead.
The move comes amid massive cutbacks across all industries. Citi has recently announced laying off a huge part of its work force, and Google is relying on AI to justify its jobs cut. CNBC says:
Macy’s on Thursday said it will cut about 3.5% of its workforce and close five of its namesake mall locations as the legacy department store moves to trim costs and turn around slowing sales.
The move will affect approximately 2,350 positions across its corporate office and stores, company spokesman Chris Grams said.
Macy’s national footprint is especially important during the holiday season. Online shopping and changing consumption patterns with younger generations are making large department stores struggle. CNN reports:
Macy’s is emblematic of the holiday season, sponsoring both the Thanksgiving Day Parade In New York City that traditionally kicks it off and as the setting for, and employer of, Santa Claus in the 1947 classic film “Miracle on 34th Street.”
But it has struggled against rising competition and a migration of shoppers away from department stores.
While a recession is not reportedly on the horizon, higher interest rates have no doubt cooled down consumer spending. A worsening economy could be a serious problem for the Democrats and Biden’s reelection campaign.
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