Macy’s job cuts: 7000 to go

The United States’ second largest department store company Macy’s has announced large job cuts, with plans to lay off 7,000 position.

The job cuts amount to 4% of its workforce and will help the company save $250 million in 2009, and $400 million annually from next year. The cuts include a 40% head count reduction in management.

Macy’s made the cuts of the back of poor results, with the company reporting its worst holiday season in 40 years

Chief Executive Officer Terry Lundgren said in a press release that Macy’s “must operate in a responsible manner that allows us to maximize the value we offer to our customers and enhance our profitability. That includes reducing expenses and conserving cash so we can remain financially healthy. In the short and long term, the actions being announced today will make us a more lean and efficient company and a stronger competitor.”

The company also announced that it would buy back $950 million in outstanding bonds.