Macy's is closing 125 stores, cutting thousands of corporate jobs, and shuttering offices

• Macy's is closing over a hundred stores, cutting 2,000 corporate jobs, and closing offices.
• The company will be closing its San Francisco, downtown Cincinnati, and Lorain, Ohio offices.
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Macy's plans to close 125 stores over the next three years and cut thousands of corporate jobs, the company said Tuesday.

The store closings represent about one fifth of the retailer's locations. The company will also cut 2,000 corporate jobs, representing about 9% of its corporate headcount, and close several offices.

"We are taking the organization through significant structural change to lower costs, bring teams closer together, and reduce duplicative work," Macy's CEO Jeff Gennette said in a statement on Tuesday. "This will be a tough week for our team as we say goodbye to great colleagues and good friends. The changes we are making are deep and impact every area of the business, but they are necessary."

Macy's said New York City will become the company's sole corporate headquarters.

The company will be closing its San Francisco, downtown Cincinnati, and Lorain, Ohio offices. The company will also close its Tempe, Arizona customer contact center and consolidate customer service work into its Mason, Ohio and Clearwater, Florida facilities.

"We will focus our resources on the healthy parts of our business, directly address the unhealthy parts of the business and explore new revenue streams," Gennette said. "Over the past three years, we have shown we can grow the top-line; however, we have significant work to do to improve the bottom-line. We are confident the strategy we are announcing today will allow us to stabilize margin in 2020 and set the foundation for sustainable, profitable growth."

The Wall Street Journal first reported news of the closures and job cuts on Tuesday.