Macy’s Consolidates Regional Divisions, Cuts 7,000 Jobs

Last week Macy’s Inc. announced plans to reorganize and consolidate its four regional divisions into one nationwide district in an effort to make its operations leaner and more efficient. The national structure includes 69 geographical districts containing 10 to 12 stores each, which will model their operations after pilot districts that Macy’s created in spring 2008 and will reportedly enhance the company’s focus on local markets. Macy’s reported that the reorganization will result in the elimination of approximately 7,000 jobs.

“With our new structure, Macy’s now will have one unified buying organization, one unified merchandise planning organization, one unified stores organization, one unified marketing organization and one unified organization for each corporate function… instead of four of each operating divisionally,” Macy’s Inc. chairman, president and CEO Terry Lundgren said in a release. “By reducing duplication, we will be able to react faster to market trends, simplify our relationship with vendors and ensure that our expense dollars are devoted to activities that will drive the business most effectively.”

Macy’s reported that this move will like reduce its previously planned expenses by roughly $400 million per year beginning in 2010, and will best position the department store for growth once the economy recovers. Visit www.macys.com.

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