Macy's Layoff: 2,500 Jobs Lost


Macy's Layoff: 2,500 Jobs Lost
Beth Worthy

Beth Worthy

1/14/2014

A bold decision made by Macy’s Inc. sent shockwaves throughout the business world when they recently announced that they would soon be laying off 2,500 employees. The decision was announced after it was shown that this past holiday season was a particularly strong shopping time for the massive department store chain. Another interesting development is that shares for Macy’s Inc. reportedly rose 5.5 percent in after- hours trading. These facts led many people to question the overall motives for the decision. If a company is profitable, then why would they choose to perform a move that has been known to be associated with companies who were decreasing in overall productivity and profit? Since the questions of intent behind the decision have circulated, it has come to light that Macy’s chose to make the arrangement as part of a reorganization to sustain its overall profitability after its recent substantial holiday success. While the decision has made headlines in various facets and circles career and social wise, there has been an overall consensus in public opinion: This is not a good idea. Like with any massive corporate layoff move, there have been those who have voiced that this is a case of corporate greed leaving thousands out in the cold without jobs. However, according to a statement made by store spokesman Jim Sluzewski in an emailed response to questions from the Times Union, he said “The 2,500 layoffs are spread across more than 850 locations across the country, so it’s a small number in any one place.” (http://blog.timesunion.com/business/macys-layoffs-impact-in-capital-region-should-be-small/58547/) Furthermore, they have stated that some of those who will be laid off will not be left in the cold, but rather, transferred to other departments in the company like their budding online shopping sector. But where does that leave the rest of their employees? Macy’s stands to save at least $100 million a year post layoffs and a healthy financial broadcast for 2014. Do you think Macy’s has made the right decision?

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Beth Worthy

Beth Worthy

Beth Worthy is the Cofounder & President of GMR Transcription Services, Inc., a California-based company that has been providing accurate and fast transcription services since 2004. She has enjoyed nearly ten years of success at GMR, playing a pivotal role in the company's growth. Under Beth's leadership, GMR Transcription doubled its sales within two years, earning recognition as one of the OC Business Journal's fastest-growing private companies. Outside of work, she enjoys spending time with her husband and two kids.