Macy’s announces $100m of savings

<p>Macy’s is cutting jobs as part of $100 million worth of savings it is making.</p>

Major US department store Macy's has confirmed it will be cutting jobs as part of a new strategy designed to save $100 million (£60.7 million) for the business.

The company announced that it will implement focused cost reductions, which include organisational changes, as it aims to sustain profitable sales growth in the years ahead.

Terry Lundgren, Macy's Inc chairman, president and chief executive officer, stated that sales and profitability have been significantly increased by the company in recent years.

"We began five years ago with a set of business strategies that were largely untested by a national retailer of our size and scope," he said, adding: "As the success of these strategies has unfolded, we have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers."

Macy's will therefore be laying off as many as 2,500 employees in order to cut its costs.

Earlier this month, Macy's reached an agreement with Martha Stewart and JC Penney over the sales of Martha Stewart home goods products in its stores.

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