Macy's cuts 2,500 jobs, stock jumps

Cost-cutting measures announced Wednesday by Macy's, including the retailer's decision to slash 2,500 jobs, sent shares climbing more than 7 percent in premarket trading.

The company also said it would close five stores in Arizona, Kansas, Missouri, New York and Utah this spring, while opening eight new Macy's and Bloomingdale's stores.

Macy's expects to save some $100 million a year through the moves, a statement said.

Job cuts will be distributed between front-end employees and those who work behind the scenes in merchandise planning and central office roles. Other employees will be transferred or given more to do, and some positions currently open won't be filled.

Changes to the organizational structure also include the combining of the Midwest and North regions to create a North Central Region, and folding nine districts into others nearby, bringing the total of districts down from 69 to 60.

Macy's employs some 175,000 associates and earned $27.7 billion in fiscal year 2012 in its 840 Macy's and Bloomingdale's stores, as well as online and in Bloomingdale's outlets.

[Macy's] [Marketwatch]