June 25 (UPI) -- Department store chain Macy's announced Thursday it will cut almost 4,000 corporate and management positions to cope with economic fallout brought on by the COVID-19 crisis.
The retailer said it plans to reduce its workforce by 3,900 corporate- and management-level jobs as part of a strategy to save $630 million.
"COVID-19 has significantly impacted our business," Macy's CEO Jeff Gennette said in a statement. "While the reopening of our stores is going well, we do anticipate a gradual recovery of business and we are taking action to align our cost base with our anticipated lower sales."
The chain closed all stores in March and has slowly reopened over the last seven weeks. The company said last month it expected a first-quarter loss of $1.1 billion.
Before coronavirus restrictions, Macy's had already planned to close 125 stores in lower-tier malls by 2023.
Gennette also said, however, that many furloughed workers will have returned by the time all Macy's locations are open on July 5.
"We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward," he said. "Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company."
Shares of Macy's stock are down 60 percent so far this year.