Big changes are happening at Macy's.
The struggling department store chain announced on Tuesday it will close 125 of its least productive stores and lay off approximately 2,000 employees over the next three years.
The company also revealed plans to pull stores out of weaker shopping malls and instead shift its focus on smaller-format stores, called Market by Macy’s, which will be located in strip centers.
Market by Macy’s stores will feature a mix of curated Macy’s merchandise and local goods, as well as local food and beverage options. The company plans to open its first Market by Macy’s in Dallas this Thursday.
The announcements come less than a month after the company revealed its plans to close 29 Macy’s and Bloomingdale’s stores. The company has shuttered more than 100 underperforming stores since 2015.
The company also confirmed to CNBC that it was also closing its offices in Cincinnati and San Francisco, leaving New York as its sole corporate headquarters.
"We are taking the organization through significant structural change to lower costs, bring teams closer together and reduce duplicative work,” CEO Jeff Gennette said in a statement. “The changes we are making are deep and impact every area of the business, but they are necessary. I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment.”
