Macy's is the latest retailer to admit the recession has hit it hard. On Monday the chain announced layoffs of 7,000, or 4% of its workforce.
As we reported earlier, Macy's announced in January that it would close 11 stores, affecting 960 employees. These new layoffs will, according to the company, lower its annual selling, general and administrative expenses by approximately $400 million starting in 2010.
The company also slashed its quarterly dividend to 5 cents from 13.25 cents.
Despite the layoffs, the company also produced some dire 2009 forecasts: Macy's said it expects to earn between $0.40 and $0.55, excluding one-time costs, for the 12-month period that ends next January.
Analysts had expected earnings of $0.87 per share.
Meanwhile, Macy's expects same-stores sales or sales at stores opened at least a year will fall between 6 - 8% in the next 12 months.
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