LOS ANGELES (CBSLA.com/AP) — Macy’s says it is eliminating more than 10,000 jobs and plans to move forward with 68 store closures after a disappointing holiday shopping season.
The department store chain also lowered its full-year earnings forecast after sales at the retailer dropped more than two percent in November and December compared to the same period last year.
A Macy’s spokesperson cited changing consumer behavior said its performance reflects the challenges that are facing much of the retail industry.
The company said the 68 store closures are part of the 100 closings it announced in August, including a 475,000-square-foot location in North Hollywood that opened in 1995.
Of the 68, three were closed by the middle of 2016, 63 will close in the spring and two will be closed by the middle of 2017, including a location at Simi Valley Town Center, where 105 people will get transferred or lose their jobs. Macy’s estimates that in all, 3,900 employees will be affected by the closures.
Macy’s also said it plans to restructure parts of its business and sell some properties. This will lead to the reduction of 6,200 jobs. The moves are estimated to save $550 million annually.