Macy's to cut 7,000 jobs, slash dividend

[marmar]

via the San Francisco Chronicle:



Macy's to cut 7,000 jobs, slash dividend
By ANNE D'INNOCENZIO, AP Retail Writer

Monday, February 2, 2009


New York (AP) -- Macy's Inc. announced Monday that it will cut 7,000 jobs, almost 4 percent of its work force, reduce its contributions to its employees' retirement funds and slash its dividend to preserve cash amid a severe pullback in consumer spending.

The Cincinnati-based department store chain also delivered bleak earnings and sales forecasts for the year.

Macy's said the cuts, which include some unfilled jobs and 1,900 positions being eliminated in a restructuring now under way nationwide, will come at corporate offices, stores and other locations. The company employs about 180,000 people.

Macy's announced last month — on the heels of the worst holiday shopping season in decades — that it would close 11 stores, affecting 960 employees. The company expects the additional actions announced Monday to lower its annual selling, general and administrative expenses about $400 million starting in 2010.

The company also slashed its quarterly dividend to 5 cents from 13.25 cents. The dividend will be paid on April 1 to shareholders of record March 13. ........(more)

The complete piece is at: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/02/02/financial/f102819S99.DTL