Retail sector under pressure – Macy’s cutting 7,000 jobs

Department store chain said the job action affects 4% of the company’s total workforce.

Macy’s Inc. said Monday that it’s cutting 7,000 jobs – including 5,100 in its stores – and centralizing some of its corporate operations in an effort to reduce costs amid an increasingly difficult retail environment.

The retailer estimates the restructuring efforts will reduce previously planned expenses by about $400 million a year beginning in 2010.

Macy’s said the job cuts include nearly 40% of executive positions in its central offices including 1,400 jobs in San Francisco, about 850 jobs positions in Atlanta and about 600 jobs in Miami.

Macy’s Inc., which operates 840 department stores including its namesake Macy’s stores and the higher-end Bloomingdale’s chain, currently employs 180,000 people.

Source : CNN Money