NEW YORK (CNNMoney) — The axe is falling at Macy’s.
The department store operator said Wednesday that it was laying off 2,500 workers and closing five stores. The company is also consolidating its regional management and restructuring its retail and merchandise planning staff.
In all, Macy’s said it expected the changes to generate savings of $100 million per year. Investors cheered the news, sending Macy’s shares up 6.4% in after-hours trading.
“[W]e 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 CEO Terry Lundgren said in a statement.
The company, which operates both Macy’s and Bloomingdale’s, said it expected to employ roughly 175,000 associates in 844 stores following the changes. The firm previously announced eight new locations that remain in the planning or construction stage.