Business

Macy’s cutting 2,500 jobs in reorganization

Macy’s said the job cuts will save the department store chain $100 million a year.
Macy’s said the job cuts will save the department store chain $100 million a year.Credit: Scott Olson/Getty Images

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NEW YORK — Macy’s Inc. is cutting 2,500 jobs as part of a reorganization to sustain its profitability.

Shares rose 5.5 percent in after-hours trading Wednesday.

The announcement comes on the heels of a strong holiday shopping season for the department store chain, which also runs the higher-end Bloomingdale’s chain.

Macy’s said the moves will save it $100 million per year and forecast a 2014 profit above Wall Street’s forecasts.

While Macy’s will cut jobs, it is also planning to reassign or transfer some workers. It is also adding positions related to online shopping, a growing area for the company, and warehouses. That will leave its workforce level at about 175,000.

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