Macy's, Inc. (NYSE:M) shares were trading lower Thursday after the company announced 3,900 job cuts.
The restructuring is due to the impact of the COVID-19 pandemic, which resulted in the closure of Macy's stores from March 18 through May 4, the company said in a statement.
The retailer said it expects the job cuts to generate expense savings of approximately $365 million in fiscal 2020 and about $630 million on an annualized basis. The company is reducing staffing across its store portfolio, supply chain and customer support network and said it will adjust as sales recover.
"COVID-19 has significantly impacted our business. While the re-opening of our stores is going well, we do anticipate a gradual recovery of business, and we are taking action to align our cost base with our anticipated lower sales," CEO Jeff Gennette said in a statement.
"We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward. Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company."
Macy's shares were down 5.68% at $6.40 at the time of publication. The stock has a 52-week high of $23.40 and a 52-week low of $4.38.