Major Restructuring At Macy’s, Inc. (M), J C Penney Company Inc (JCP), McDonald’s Corporation (MCD)
Major Consumer Goods & Services players including retailers like Macy’s, Inc. (NYSE:M) and J C Penney Company Inc (NYSE:JCP) and food-chain operator McDonald’s Corporation (NYSE:MCD) are considering massive restructuring plans to revive their businesses and strengthen the balance sheet.
While the retailers Macy’s and J C Penney are considering store closures and layoffs, the world’s biggest fast-food chain operator, McDonald’s is going to cut executive jobs at its corporate headquarters.
Macy’s Reorganization Plan
Terry Lundgren, Chairman and CEO at Macy’s, Inc. (NYSE:M), noted that the reorganization efforts are in response to changes in the way customers are shopping across physical and digital platforms. The retailer plans to shut down 14 under-performing stores and lay off thousands of employees under this plan.
Macy’s anticipates the reorganization to help save $140 million annually, which could be reinvested into the business to respond to growth in Omni Channel. The company is attempting to concentrate more on improving the seamless approach to the customer experience through all shopping channels such as mobile internet devices, computers, brick-and-mortar and more. The company is also planning to open stores at two new locations.
J C Penney’s Store Closure Plan
J C Penney Company Inc (NYSE:JCP) recently announced restructuring plans the company hopes that will put it on track of achieving long-term goals for future company growth. The retailer will close down 40 stores, affecting 2,250 employees.
Joey Thomas, a company spokesperson, said the decision is in line with our continuous evaluation of store portfolio to determine any need to relocate or close underperforming stores.
McDonald’s Layoff Plan
McDonald’s Corporation (NYSE:MCD) is eyeing to save $100 million through cost reductions to focus on improving customer traffic and increase sales in its major markets. The restaurant operator is now focusing on digital and new restaurant platforms to drive growth. The company is attempting to answer more questions about their food, and to adapt to the rapidly changing landscape of fast food, which is under assault from fast casual operators like Chipolte who offer the customer better perceived quality.
The company reported to the state of Illinois that it will lay off 63 employees at its corporate headquarters effective February 16, 2015. McDonald’s currently employs nearly 1,700 workers at its headquarters.
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