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Weak demand prompts Macy's to cut 3,900 jobs in push to save cash

Macy's New YorkMacy’s Inc (M.N) said on Thursday it would lay off about 3,900 employees in corporate and management positions as U.S. businesses try to save cash in the face of dwindling demand caused by the COVID-19 pandemic.

Macy’s had in May warned of nearly $1 billion in operating losses in its first quarter and said it would turn into a “smaller company”.

The job cuts come at a time when unemployment figures in the United States are already high. Rising coronavirus infections in many U.S. states including California, Texas and Florida are likely to hurt employment further as some people stay away from consumer-facing establishments.


Brooks Brothers Joins List of Faded Luxury Facing Bankruptcy

Brooks Brothers factory facing bankruptcy

Another icon of luxury goods and Wall Street culture may be headed for the bankruptcy auction block, with Authentic Brands Group LLC and mall landlord Simon Property Group Inc. in talks to buy Brooks Brothers Inc.

Authentic and Simon would team up to bid for the two-century-old chain after a potential Chapter 11 filing by the retailer, according to people with knowledge of the talks. They asked not to be identified because the process is private. Authentic has a history of buying well-known brands that have fallen on hard times, and Simon, the nation’s biggest mall landlord, has a stake in keeping its prime tenants in business.

It’s been a tough few years for high-end goods, even before the Covid-19 outbreak forced Brooks Brothers to temporarily close its stores. Retailers including Barney’s New York Inc., Neiman Marcus Group Inc. and Dean & DeLuca have gone bust as shoppers shunned malls in favor of online outlets.


U.S. layoffs ease in April; hiring slumps to record low

Unemployment down, hiring also downLayoffs in the United States fell in April, but remained the second highest on record, while hiring hit an all-time low, suggesting the labor market could take years to recover from the COVID-19 crisis despite a surprise rebound in employment in May.

The report from the Labor Department on Tuesday also showed a decline in job openings as the economy battles a recession triggered by the pandemic. The National Bureau of Economic Research, the arbiter of U.S. recessions, declared on Monday that the economy slipped into recession in February.


American Airlines plans 30% reduction of management, administrative staff

American Airlines to cut 30% of staff

American Airlines is planning to cut 30% of its management and support staff, a reduction of about 5,000 jobs, because of the toll coronavirus is taking on the business, the company told employees Wednesday.

The airline also started offering buyouts to these employees and said it plans to offer new voluntary leave and buyouts for frontline staff, such as flight attendants, next month, according to a company memo that was viewed by CNBC.

“Although our pre-pandemic liquidity, the significant financial assistance provided by the government, and the cash we’ve raised in the capital markets provide a foundation for stability, we need to reduce our cost structure, including our most significant expense — the cost of compensation and benefits,” Elise Eberwein, American’s executive vice president of people and global engagement, said in the staff note.


Tuesday Morning retailer files Chapter 11 bankruptcy, plans 230 store closings

Tuesday Morning stores closing

Off-price retailer Tuesday Morning filed for Chapter 11 bankruptcy protection Wednesday with plans to close more than a third of its stores.

Tuesday Morning had been struggling when the coronavirus pandemic began and went into a free fall when it was forced to temporarily close its locations due to the crisis.


J.C. Penney store closings coming: Retailer trying to avoid liquidation in Chapter 11 bankruptcy

JC Penny closing stores

J.C. Penney proposed a restructuring plan that would shed billions of dollars in debt and allow the company to emerge from bankruptcy as a financially sustainable company.

But U.S. Bankruptcy Judge David Jones told J.C. Penney attorneys in a rare Saturday hearing that he has "concerns" that the company is not moving "fast enough."

"I do think there is a genuine hope that the turnaround efforts will proceed, but it is kind of hard when people are prohibited from coming into your store and you can’t turn the lights on," Jones said.


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