Retail woes continue to strike Macy's, Inc. (NYSE: M), as the company announced today that is going to cut roughly 4% of its workforce. The Cincinnati-based retailer stated that 7,000 jobs will be jettisoned, which includes positions that are currently open. The firm's current workforce is roughly 180,000.In addition, Macy's cut its quarterly dividend to 5 cents from 13.25 cents. This dividend will be paid on April 1 to shareholders. In addition, Macy's reduced its 2009 capital expenditures budget to roughly $450 million, down from an earlier estimate of $550 million to $600 million.
The struggling retailer believes that the reductions and other actions will help cut expenses by roughly $400 million starting in 2010.
This announcement hit Wall Street and the stock dropped. Shares of Macy's are roughly 6% lower. The stock had been treading near its 10-week trendline, but today's news has pushed the equity further below this trendline and (perhaps more significantly) through its 50-week moving average. The latter had recently provided support, but it could now act as resistance -- which is exactly what the stock doesn't need.
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Reader Comments (Page 1 of 1)
2-02-2009 @ 6:34PM
gnosticimp said...
I think Macy's will down size during the lean years, but will rebound when times change - if they do.