Hundreds of Bloomingdale’s employees are reportedly out of their jobs.
According to FN’s sister publication WWD, roughly 350 to 400 executives at the chain’s headquarters and workers in managerial roles at stores have been terminated as part of parent company Macy’s Inc.’s recently announced mass layoffs.
The report added that a number of roles in Bloomingdale’s digital team are “being integrated” into Macys.com. What’s more, the retailer is said to have made reductions in Bloomingdale’s store design, construction and facilities teams.
FN has reached out to Bloomingdale’s for confirmation and comment.
Last week, Macy’s revealed that it was implementing thousands of layoffs and downsizing its business as the coronavirus pandemic continues to batter retail. Among those employees affected by job cuts is said to be brand experience officer Rachel Shechtman, who founded Story, the concept shop acquired by Macy’s in May 2018.
The New York-based corporation — which owns its namesake chain and Bloomingdale’s as well as luxury beauty retailer Bluemercury — will eliminate about 3,900 corporate and management positions, or about 3% of its total workforce. It added that it has also cut an unspecified number of jobs across its outposts, supply chain and customer support network, with plans to make adjustments as revenues bounce back.
“COVID-19 has significantly impacted our business. While the reopening of our stores is going well, we do anticipate a gradual recovery of business, and we are taking action to align our cost base with our anticipated lower sales,” Macy’s chairman and CEO Jeff Gennette said at the time. “These were hard decisions as they impact many of our colleagues.”
The department store giant anticipates that these changes will save it approximately $365 million for the 2020 fiscal year and roughly $630 million on an annualized basis. It announced early this month that it raised $4.5 billion in new financing to assist with funding operations and new inventory, resolve outstanding payments and repay debt due in fiscal 2020 and 2021. (According to S&P Global, the company has roughly $530 million in debts payable in January 2021, with $450 million due a year later.) Macy’s ended the first quarter with $1.5 billion in cash.