Retail Giant Macy’s will be laying off an additional 7,000 people soon. This news comes right on the heals of Macy’s recent closure of 11 stores last month as well. 5,100 hundred of the most current lay offs will affect store employees and the remaining number of layoffs will affect the corporate employees who will have the suffer with the confusion of coporate operations becoming centralized in an effort to reduce cost in the midst of an increasingly difficult retail sales quarter.
To add further to Macy’s economic troubles, the projected earnings for the fiscal year are well below what analysts even hypothesized at the beginning of the year.
It should be noted that same-store sales fell 7.5 percent during the combined November and December holiday period. Macy’s said the holiday season ended with improving sales in the fourth and fifth weeks of December but that sales were sluggish before that.
Employees who are laid off will be given the opportunity to apply for new jobs currently open in the economy. However, when a company encounters heavy reorganization within its structure - and has to cut back on previously planned expenses; I’m not so sure if these current openings within the company will actually be filled.
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