Department store giant, Macy's, announced yesterday that it will cut 7,000 jobs, or 4% of its workforce, as part of a reorganization effort. The layoffs include about 40% of management jobs. The company will also repurchase debt, lower its dividend and reduce capital spending, which (combined with the job cuts) should allow the firm to save around $400 million annually. The announcement comes just weeks after the chain said it would close 11 stores. The cost-cutting measures are a result of slowing sales and drastic reductions in consumer sales.
See "Macy's to Cut 7,000 Jobs Amid Reorganization", Yian Q. Mui, The Washington Post, February 2, 2009