Macy's is slashing 3,900 jobs as the pandemic forces it to adapt

• Macy's is laying off about 3,900 corporate jobs.
• It said it expects the job cuts to lead to about $365 million in savings for the rest of fiscal year 2020 and $630 million a year going forward.
• "We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward," CEO Jeff Gennette said in a statement.

Macy's is slashing about 3,900 corporate and management jobs as part of a restructuring effort, it announced in a press release Thursday.

It said it would also cut headcount at stores and throughout its supply chain and customer support network. Those cuts would be adjusted "as sales recover," the department store said.

In a statement, Macy's CEO Jeff Gennette blamed the COVID-19 pandemic for bringing significant harm to its business. All of Macy's stores closed to slow the spread of the virus on March 18, and they gradually started reopening on May 4.

"While the re-opening 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," Gennette said.

"These were hard decisions as they impact many of our colleagues. I want to thank all of our colleagues – those who have been active and those on furlough – for helping us get through this difficult time, and I want to express my deep gratitude to the colleagues who are departing for their service and contributions."

Most of the retailer's remaining furloughed employees will be returning to work the week of July 5.

A representative for Macy's did not immediately return Business Insider's request for further detail on which specific departments would be affected by the layoffs.

Macy's said it expects the job cuts to lead to about $365 million in savings for the rest of fiscal year 2020 and $630 million a year going forward. It announced on June 8 it had raised $4.5 billion in additional funding to help it weather the effects of the pandemic.

"We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward. Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company," Gennette said on Thursday.