Macy's Inc. announced today it will cut 7,000 jobs, reduce its quarterly dividend and change its operating structure as a strategy to increase sales, profitability and reduce costs.
The company plans to reduce expenses by approximately $400 million per year beginning in 2010, and $250 million in 2009.
The net reduction of 7,000 positions will be eliminated from offices, stores and other facilities. Those represent about 4 percent of the company's 180,000 positions, Macy's said in a statement.
Given the economic conditions, the retail store operator cut its quarterly dividend to 5 cents per share of common stock from the current 13.25 cents as it expects lower sales in 2009.
Macy's, Inc. is also restructuring by integrating all its divisions into a single unit, the company said today.
For this fiscal year, it is expecting earnings of 40 cents to 55 cents a share. It anticipates that same store sales may drop between 6 percent and 8 percent.