Macy’s moves cut deep

Misery loves company — and no company was more miserable this week than Macy’s, which cut its dividend by 62% and revealed plans to cut 7,000 jobs, just days after Target announced the elimination of more than 1,400 positions and Home Depot announced 7,000 job cuts.

The job cuts at Macy’s were bundled as part of a larger announcement regarding an initiative called, “My Macy’s,” which is designed to position the company for increased sales, profitability and cash flow.

Although the job loss is unfortunate, it is a byproduct of an overdue change in Macy’s approach to managing its business. The company is adopting a centralized structure common among mass-market retailers that lowers expenses by eliminating redundancy at the corporate level and implementing a new field reporting structure based on districts that is designed to improve store operations.

Eventually, the moves could make Macy’s a stronger competitor, which is potentially troublesome news for Target, since Macy’s has been donating market share to Target for years.