A chain of mid-range American department stores, Macy's, announced its decision to unite three of its divisions, a step that will lead to 950 job cuts in Minnesota.
The changes will concern Minneapolis-based Macy's North organization (65 stores in Illinois, Indiana, Michigan, Minnesota, North Dakota, Ohio, South Dakota, and Wisconsin), consolidated into Macy's East, headquartered in New York; Macy's Midwest, headquartered in St. Louis (95 stores in the mid-West states) consolidated into Atlanta-based Macy's South and Seattle-based Macy's Northwest (71 stores), consolidated into San Francisco-based Macy's West.
The company will pay pre-tax charges of approximately $150 million in 2008 for expenses related to the consolidation. But thanks to this step the company will reduce expenses by approximately $100 million, beginning in 2009.
The victims of consolidation will either be offered positions in other areas, or be provided severance benefits and job-placement assistance.