Macy’s (NYSE:M) is laying off about 2,350 employees, or 3.5% of its overall workforce, and closing five stores, the Wall Street Journal reported. The latest move should help the retailer streamline operations and enhance cost efficiency.
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The layoffs will primarily focus on corporate roles. Alongside workforce streamlining, Macy’s unveils plans to invest in supply chain automation and reduce management layers to enhance operational efficiency and expedite decision-making.
Since the pandemic, the company’s performance has been impacted by sluggish demand and excess inventory. As a result, Macy’s undertook several restructuring measures, including a workforce reduction of 28,000 and the closure of 119 stores. These steps were taken to regain financial stability and position the retailer for future growth.
Layoff Drive
Macy’s joins a growing list of prominent companies, including Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), and Citigroup (C), implementing workforce reductions in early 2024.
Economic anxieties, the accelerating adoption of artificial intelligence, and strategic workforce adjustments are key reasons for the layoffs.
Is Macy’s Stock a Buy or Sell?
Analysts remain sidelined on Macy’s stock with a Hold consensus rating based on four Buys, five Holds, and two Sells. The average M stock price target of $17.10 implies a downside potential of 4.6% at current levels. Shares of the company have surged by about 13% over the past six months.
