Macy’s (M) will cut 7,000 workers, about 4% of its work force. The company says it will also slash its dividend.
Macy’s same-store sales were off 4% in December. Many analysts believe that retailers which aim at middle class buyers will have an especially hard year. Some estimates put the total number of retail locations that will close in the US in the first half of this year at 72,000.
Macy’s has over 850 stores and 182,000 employees.
According to MarketWatch, "The retailer said it reduced its 2009 capital expenditures budget to about $450 million, down from a previous estimate of $550 million to $600 million."
Because it is not hard to imagine same-store sales moving down in the double digits as the first quarter moves along, these may not be the last layoffs by Macy’s (M). But, that is probably true of most large retailers.
Douglas A. McIntyre
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