CINCINNATI, Ohio — Macy’s is restructuring in a major way.
- Macy’s announced major restructuring, closing the Cincinnati and Lorain offices
- Macy’s is also closing 125 of its underperforming retail stores
- The company hopes the readjustment will save them $1.5 billion by 2022
The company is eliminating 2,000 corporate positions nationwide and campuses like the one in downtown Cincinnati are closing and consolidating its headquarters to New York City.
The Cincinnati office employs roughly 500 people. Macy’s expects this move will save $1.5 billion by 2022.
Macy’s is also closing the system and technology office in Lorain, Ohio. And Macy’s is closing 125 of its lower performing stores across the country.
Macy’s Chairman and CEO Jeff Gennette issued the following statement:
“We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work. This will be a tough week for our team as we say goodbye to great colleagues and good friends. The changes we are making are deep and impact every area of the business, but they are necessary. I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment.”
Macy’s picking up and leaving Cincinnati marks the sixth corporation to uproot from the city since July, according to the Cincinnati Business Courier.
Cincinnati Mayor John Cranley issued the following statement:
“We appreciate the hard work Macy’s local employees have put in over the last several years and hope those employees will stay in our community. Our City’s renaissance has persisted and continues today with our metro leading the state in job gains over the last decade and adding 24,000 jobs in 2019—more than any other Ohio metro. This departure, while disappointing, is indicative of a changing retail industry and how they must adapt. It will not stop our city’s continued growth.”
Cincinnati City Council Member David Mann was saddened when he heard Macy’s was leaving Cincinnati, and immediately thought of the people who are losing their jobs.
He’s hopeful they can land on their feet, preferably in Cincinnati, but overall, he says you could see this move coming.
“This isn’t a great surprise, given the changes in the retail world, the competition of Amazon and so forth,” Mann said. “We shouldn’t be surprised that Macy’s reaches the conclusion that it’s not cost-effective to have two headquarters, Manhattan and Cincinnati.”
It has not yet been announced when we should expect to see the retail store closures, but we know it will happen gradually over the next three years.
Macy’s says eligible employees will receive severance, including outplacement resources.
Macy’s also says it will transition the functional operations from the downtown location to its Springdale facility.
Macy’s is also closing a customer contact center in Tempe, Arizona, and shifting those duties to the call center in Mason. That move will create 600 new jobs this spring.
