It’s a sign of the times: another day of another several thousand employees hitting the unemployment line.
The latest culprit in the chopping block cavalcade is the department store stalwarts at Macy’s. With Americans saving all their money for a day when the economic forecast ain’t so rainy (and the retail market sagging thusly), the company announced yesterday that it would be slashing some 7,000 employees, up to 4% of it’s work force. The cuts not only encompass 40% of the company’s corporate sector, but 5,100 of those positioned to get pink slips are currently employed at Macy’s and Bloomingdales stores across the country. This means that while customers will soon be able to breeze through the beauty aisles with the probability of being aggressively spritzed with Liz Taylor’s White Diamonds, they’ll also find little guidance when searching for the perfect tie to pair with their black and purple striped button down.
In addition to the cuts, the company (which runs 840 stores) is centralizing their corporate structure and responsibly recommending that executive prerequisites such as company cars, merchandise discounts, company-paid life insurance and financial counseling be reduced. With fiscal earnings for the beginning year estimated to be dramatically below projections, the moves could potentially save the annual Thanksgiving Day Parade hosts around $400 million in expenses. That should help keep the company afloat.
