CINCINNATI–Macy’s is cutting 40 percent of its executive staff as part of a move to cut 7,000 positions (4 percent of its workforce) and eliminating its divisional structure and the New York-based Macy’s Home Store and Macy’s Corporate Marketing divisions.
Macy’s Inc. will be reformed into a single operating structure to support the Macy’s business which will eliminate duplication in areas such as buying, planning, marketing and stores supervision. Macy’s Home Store functions will be integrated into the Macy’s national merchandising, stores and marketing organizations.
Macy’s merchandising, buying, planning and marketing will be located primarily in New York by the second quarter of 2009.
The elimination of the retailer’s divisional central office organization will cut 1,400 positions at Macy’s West headquarters in San Francisco; 850 positions at Macy’s Central headquarters in Atlanta; and 600 positions at Macy’s Florida headquarters in Miami.
Corporate-related business functions such as finance and human resources, will be located mostly in Cincinnati.
At the same time, My Macy’s, the organizational structure the retailer started testing in 20 markets last year to localize assortments, will be expanded across the U.S. and will add 1,200 positions.
In the new structure, Timothy Adams, currently chairman and chief executive officer of Macy’s Home Store, will become chief private brand officer. He
will be responsible for the organization that conceptualizes, designs, sources and markets the company’s private brands.
Vice Chair Janet Grove, also currently chairman and CEO of Macy’s Merchandising Group, the private brand arm, will facilitate the transition of merchandising, planning and private brand development functions until her retirement in mid-2011. In addition, Grove will assume responsibility for the company’s international retail store development initiatives during this period.
Jeffrey Gennette, currently chairman and CEO of Macy’s West, becomes chief merchandising officer, overseeing all buying and merchandising functions for Macy’s nationwide.
Ronald Klein, currently chairman and CEO of Macy’s East, becomes chief stores officer.