The Impact Of E-Commerce Is Too Strong, And Employees Have To Be Laid Off

Everyone said that e-commerce has impacted e-commerce. Then, unfortunately, a department store brand has been really impacted by e-commerce and had to downsize. Although it was a bad start to the year, Macy's said that it could cut costs by $400 million every year.

　　 Macy's Announced plans to close some stores. Layoff Details include the reduction of about 3000 store staff and the provision of resource resignation opportunities for about 165 senior executives. At the same time, the company will also cut 600 employees who have formed positions, and will integrate the customer service center to cut 750 jobs.

The reason why Macy's Department Store made this move is because of the previously announced Performance data The third quarter financial report released by Macy's in November 2015 showed that the company achieved sales of 5.874 billion dollars, down 5.2% year on year. The net profit of the same store dropped 45.6% to $118 million, which was lower than the market expectation.

Inadequate exploration of discount retail and e-commerce has become an important reason for restricting performance improvement. Therefore, in addition to restricting cost expenditure in terms of layoffs, retailers led by Macy's should also explore effective ways to counter e-commerce channels and explore new demands for consumer experience.

Interestingly, in August 2015, Macy's Department Store Group announced to open a flagship store in Tmall Global, becoming the first American department store to enter Tmall Global, and is expected to achieve sales of 5000 dollars in China in 2016.