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?
4,968 total views, 6 views today
Beth Worthy is the Director of Operations for GMR Transcription Services, Inc an Orange County, California based company that has been providing accurate and affordable transcription services since 2004. GMR Transcription has worked with over 8,000 clients spanning myriad industries and prides itself on its customer service and quick turnaround time. Their services include audio transcription, video transcription, and digital transcription, as well as Spanish and Mandarin translation. Google +