Macy's to shut stores, lay off workers and restructure marketing; reports sales

MarketsAssociated Press

Macy's plans to restructure its merchandising and marketing and lay off of thousands of workers in response to changes in the way customers shop in stores and online.

The retailer said Thursday it will also close 14 department stores but open two new locations, resulting in annual savings of roughly $140 million. Macy's says it plans to reinvest those savings into its business.

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It says its overall workforce of about 175,000 will remain level as it picks up staffing in other functions.

Separately, the Cincinnati company says a key sales metric rose 2.7 percent during November and December, in line with its expectations.

Macy's Inc. says it is backing its expectations for fourth-quarter earnings per share, excluding restructuring costs.

The company's stock slid more than 3 percent in after-hours trading.