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Macy’s Cuts 7,000 Jobs


(Filed Under Fashion News). Macy’s Inc., has announced several cost saving measures that it will take in 2009, including eliminating 7,000 positions across the nation.

The loss of the thousands of jobs is a result of a new unified structure that will incorporate many divisions into one location.

“Especially in the current challenging economy, we must operate in a responsible manner that allows us to maximize the value we offer to our customers and enhance our profitability,” said Terry J. Lundren, chairman, president and chief executive officer. “With our new structure, Macy’s now will have one unified buying organization, one unified merchandise planning organization, one unified stores organization, one unified marketing organization and one unified organization for each corporate function such as finance, logistics, information technology and human resources - instead of four of each operating divisionally.”

The net reduction of 7,000 positions represents approximately 4 percent of the company’s total workforce of approximately 180,000 positions.

Effective immediately, Macy’s will begin the process of eliminating its divisional structure and integrating all functions into one single organization. Macy’s central buying, merchandise planning, stores senior management and marketing functions will be located primarily in New York. Whereas corporate-related business functions such as finance, human resources, law, property development and purchasing – including those now performed at the division level – will be primarily in Cincinnati.

The new unified organization structure will begin in the second quarter of 2009.

Of the 7,000 positions that will be eliminated, about 1,400 are at the Macy’s West headquarters offices in San Francisco, about 850 are at the Central headquarters in Atlanta and approximately 600 are at the Florida headquarters in Miami.

Macy’s East will no longer exist as a division going forward, but many members of the current division merchandising, planning, stores management and marketing staffs will be part of the new unified organization.

The new executive management team under Lundgren’s leadership include: Timothy Adams, currently chairman and CEO of Macy’s Home Store, will become chief private brand officer; Thomas Cole, currently vice chair of Macy’s, Inc., will become chief administrative officer; Mark Cosby, currently president and COO of Macy’s West, will become president of stores; Jeffrey Gennette, currently chairman and CEO of Macy’s West will become chief merchandising officer and will be responsible for all buying and merchandising functions for Macy’s nationwide, as well as for relations with market vendors; Julie Greiner, currently chairman and CEO of Macy’s Florida, will become chief merchandise planning officer; Karen Hoguet, currently EVP and chief financial officer, will remain as chief financial officer; Ronald Klein, currently chairman and CEO of Macy’s East, will become chief stores officer; Peter Sachse, currently president of Macy’s corporate marketing, remains the company’s chief marketing officer as well as chairman and CEO of macys.com.

At the time of press, BODY was unable to reach Macy’s regarding the person responsible for buying intimate apparel.

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Published 02-02-2009 by Bruna Fernandes



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