Macy’s to Cut 100 Jobs as Sales Decline

Macy’s has announced that it will cut 100 jobs and that Hal Lawton is the company’s new President.

According to an article on Reuters, Macy’s has announced that it will cut 100 jobs. The department store also announced that Hal Lawton is the company’s new President.

The company said it expected costs of about $20 million to $25 million mostly in the third quarter fiscal 2017 and that the job cuts would save $30 million annually.

The company also expects savings of about 1 cent per share in Q4.

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CEO Jeff Gennette released a statement saying,

Macy’s has long been known for innovation and excellence in merchandising. The changes we are making today maintain our core merchandising skills while massively simplifying our structure and processes for greater speed and flexibility. We are also further strengthening our consumer insights and data analytics capabilities so we can make better decisions faster, balancing the art and science of retail.

Macy’s also announced that Hal Lawton is the company’s new President. Lawton used to be Senior Vice President of eBay and will begin working on September 8th.

Gennette released a statement saying,

Hal Lawton has deep expertise at the intersection of retail and technology, a diverse set of business experiences that give him a unique perspective, and a track record of successfully driving a change agenda at scale. I’m thrilled that he has chosen to join Macy’s. This is a key step as we look to further transform the business and work through the volatility of today’s retail landscape.

He continued saying Lawton is

arguably one of the most interesting outside additions to the entire department store space, let alone Macy’s, over the past decade. One has to think that the addition of Mr. Lawton will bring a fresh perspective – one that is arguably long overdue. All told, while the move won’t impact sales or profitability overnight, we think the addition could mark the beginning of a new chapter for Macy’s.

The hiring of Lawton is just the latest in the company’s plans to increase sales and profits. Sales at department stores have been declining for a while as customers shop more online than in stores. Last year the company announced plans to close 36 stores and cut about 4,800 jobs. Then, the company announced plans to close 100 more stores. Earlier this year, the company announced plans to close even more stores and cut 10,000 jobs.

Hiring Lawton will probably make sales and profits increase at the company.

So, what do you think? Will Hal Lawton do well at Macy’s? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me in Facebook, Instagram, Snapchat.


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