NEW YORK — Macy’s Inc. is cutting 2,500 jobs as part of a reorganization to sustain its profitability.
Shares rose 5.5 percent in after-hours trading Wednesday.
The announcement comes on the heels of a strong holiday shopping season for the department store chain, which also runs the higher-end Bloomingdale’s chain.
Macy’s said the moves will save it $100 million per year and forecast a 2014 profit above Wall Street’s forecasts.
Macy’s has been a standout among its peers throughout the economic recovery and has reaped the benefits of its strategy of tailoring merchandise to local markets. But like other merchants, Macy’s is grappling with a still cautious shopper. It is also trying to respond to shoppers’ shift toward buying and research on their PCs and mobile devices such as smartphones.
While Macy’s will cut jobs, it is also planning to reassign or transfer some workers. It’s also adding positions related to online shopping, a growing area for the company, and warehouses. That will leave 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.