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Macy’s stock surges after news of layoffs

Macy’s is laying off 2,500 people and closing stores to improve efficiency.
Macy’s is laying off 2,500 people and closing stores to improve efficiency.Matthew J. Lee/Globe Staff/2013/Globe Staff

Macy's Inc. jumped 7.6 percent, the most in the S&P 500. Many retailers' holiday sales suffered, but Macy's were solid, and it forecast profit for next year ahead of analysts' estimates. Still, it aims to cut costs — mainly by eliminating 2,500 jobs and closing certain stores, while opening Macy's and Bloomingdale's stores elsewhere. "Our company has significantly increased sales and profitability over the past four years," CEO Terry Lundgren said, but it has "identified some specific areas where we can improve our efficiency."