Business

Macy’s cuts 2,500 jobs

A Macy's department store in New York.

AP File

A Macy's department store in New York.

CINCINNATI (AP) — Macy’s Inc. is cutting 2,500 jobs as part of a reorganization to sustain its profitability.

The announcement comes on the heels of a strong holiday shopping season for the department store chain.

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Macy’s said Wednesday that it will reassign or transfer some workers and add some positions, leaving its workforce level at about 175,000.

The Cincinnati-based company plans to close five stores and open eight others, leaving it with 844 stores nationwide once the changes are complete.

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Macy’s says the moves will save it $100 million per year and forecast a 2014 profit above Wall Street’s forecasts.

The news sent its shares up 5.5 percent in after-hours trading.

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