In addition to the unspecified 2009 match reduction, the company announced Monday it planned to cut about 7,000 jobs. Merit salary increases for executives considered in spring 2009 for performance in 2008 are also being eliminated across the company, Macy’s said.
In addition, management will be recommending to the Board of Directors a reduction in perquisites for executives, including merchandise discounts, company cars, company-paid life insurance, and financial counseling, according to a company news release.
Macy’s said it expects these steps to reduce its previously planned expenses by about $400 million per year starting in 2010 and $250 million in part of 2009. The cost-cutting also includes integrating its divisions into one unit. Its Bloomingdale’s stores will not be affected by these initiatives, Macy’s said.
According to that plan, it will group its stores into 69 geographic areas with an average of 10 to 12 stores in each district.