Updated: 01/08/2014 3:45 PM
Created: 01/08/2014 3:25 PM KSTP.com
By: Leslie Dyste
Macy's announced Wednesday it is planning to lay off 2,500 employees as it restructures the company.
The company is planning cost reductions, including organizational changes, in an effort to sustain profitable sales growth in the future.
The changes are estimated to generate savings of about $100 million per year beginning in 2014, according to a news release from Macy's.
"Our company has significantly increased sales and profitability over the past four years, and we have created a culture of growth at Macy's, Inc. We began five years ago with a set of business strategies that were largely untested by a national retailer of our size and scope. As the success of these strategies has unfolded, we have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers," said Terry J. Lundgren, Macy's, Inc. chairman, president and chief executive officer.
The company also announced it will close five stores in early spring this year. None of the store closures are in Minnesota.
Meanwhile, Macy's is in the process of opening eight new stores. The new store locations are not in Minnesota.
At this point, it's unclear if employees in Minnesota will be impacted by the round of layoffs.