Macy’s to eliminate 4,500 jobs, closing 36 stores after disappointing 2015

The first round of retail layoffs have been announced in 2016 as Macy’s will eliminate more than 4,500 jobs as part of another restructuring plan that includes the closure of 36 stores across the country.

Macy’s plans to make several cuts across its stores, offices and a call center impacting about 3,000 workers. But Macy’s said roughly half are expected to be placed in other positions. An additional 600 back-office positions will be eliminated, with about 150 people being reassigned. The total number of layoffs, discounting those expected to be reassigned, is more than 2,100, the company said.

Macy’s will also offer a “voluntary separation opportunity” to roughly 165 senior executives who meet certain age and service requirements.

The retailer cited disappointing 2015 sales as the reason for this purge which is expected to render the company approximately $400 million in annual savings.

This purge has become annual ritual for Macy’s who in January 2015 announced the closure of 14 stores with roughly 2,200 jobs eliminated. In January 2014 Macy announced 2,500 layoffs in its Macy’s and Bloomingdale stores. This streamlining in recent years was to help the retailer invest more in technology and evolving customer needs.

Macy’s shares (NYSE: M) closed Wednesday (Jan. 6) at $36.14, down 2.22%. The stock is down more than 50% from its 2015 high.