(CNBC) -- Macy’s will shut 125 stores over the next three years and slash about 2,000 corporate jobs, as it shutters its tech offices in San Francisco and its Cincinnati headquarters, the company announced Tuesday afternoon.
The department store chain said it plans to exit weaker shopping malls, and instead will shift its focus toward opening smaller-format stores in strip centers.
Beginning in 2020, it said it expects to generate annual gross savings of about $1.5 billion, which will be fully realized by the end of 2022. This year, Macy’s is anticipating gross savings of roughly $600 million, “some of which will flow to the bottom line in order to stabilize operating margin.”
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