US department store chain strikes 2,550 jobs; restructuring

Business Materials 7 February 2008 00:31 (UTC +04:00)

( dpa )- The US department-store chain Macy's is cutting 2,550 jobs to slim down regional structures and save costs, the Cincinnati, Ohio-based company said Wednesday.

At the same time, an additional 250 new jobs were being created. Last month Macy's, like much of the US retail industry, showed lower sales figures than expected and reduced its earnings expectations.

Macy's employs 188,000 workers and operates 850 stores around the country, including the traditional upscale Bloomingdale's stores. The company already eliminated 900 jobs in late December and closed some shops.

The workforce cuts are aimed at a one-time savings of 150 million dollars, followed by savings of 100 million dollars a year starting in 2009.