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Last Updated: Thursday, 22 September 2005, 17:03 GMT 18:03 UK
Macy's shake-up puts jobs at risk
Macy's department store in New York City
There will soon be more than 850 Macy's stores in the US
More than 6,000 retail jobs could be lost in a big restructuring drive by the owner of iconic US department store chains Macy's and Bloomingdale's.

The shake-up follows parent firm Federated Department Stores' $11bn (5.7bn) takeover of rival firm May Department Stores earlier this year.

Federated is closing administrative offices across the country in order to save money, putting 6,200 jobs at risk.

The firm said it would offer as many staff as possible other positions.

Competitive pressures

However it did guarantee that no redundancies would take place before next March.

At the time of the takeover, Federated said it would look to make annual cost savings of $175m in 2006 and $450m in 2007.

We must concentrate on our best national brands and reduce costs so we can deliver outstanding value to shoppers
Terry Lundgren, Federated Department Stores

The cuts will affect employees in Boston, Houston, Los Angeles, St Louis and Arlington, Virginia.

Federated said the shake-up would free up resources to cut prices and to open more stores.

"To better serve our customers in this highly competitive retailing environment, we must concentrate on our best national brands and reduce costs so we can deliver outstanding value to shoppers," said Federated chief executive Terry Lundgren.

Other changes will see all Marshall Field's outlets acquired in the May deal being rebranded as Macy's next year, while four further stores will be given the Bloomingdale's name.

Once the restructuring is complete, there will be 850 Macy's and 40 Bloomingdale's outlets across the US.

Federated also announced plans to sell its chain of 700 bridal stores.

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28 Feb 05 |  Business
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