Quantcast
StarBulletin.com

Macy's to cut 7,000 jobs, slash dividend


By

POSTED: Tuesday, February 03, 2009

NEW YORK » Macy's Inc. announced today that it will cut 7,000 jobs, or 4 percent of its work force, and slash its dividend as the department store chain looks to lower expenses and preserve cash amid a severe pullback in consumer spending.

Company officials couldn't be immediately reached to determine whether there would be any affect on Hawaii stores.

Cincinnati-based Macy's said the job cuts, which include some unfilled jobs, will come at offices, stores and other locations. The company currently employs about 180,000 people.

Macy's had already announced last month that it would close 11 stores, affecting 960 employees, after retailers suffered through the worst holiday season in decades.

Macy's said it expects the latest job cuts and other actions to lower its selling, general and administrative expenses by about $400 million annually starting in 2010.

The company also slashed its quarterly dividend to 5 cents from 13.25 cents. The dividend will be paid on April 1 to shareholders of record March 13.

Macy's also announced plans today to roll out its strategy to localize merchandising to specific markets on a national scale. It began testing the strategy in 20 regional markets last spring.

As part of the restructuring, the company will begin eliminating its Macy's division structure and integrating all functions into a single organization.