Macy's cutting thousands of jobs in restructuring

Department store Macy's announced Wednesday it will cut thousands of jobs as part of restructuring to trim costs and reverse what it called "disappointing 2015 sales and earnings."

With the overhaul, Macy's expects to reduce expenses by about $400 million annually, starting this year. It will cut about 3,000 associate jobs and more back-office and call center positions, as well as create a "voluntary separation opportunity" for 165 senior executives. Some of those employees will be moved to other jobs.

The company will also take $200 million in charges related to restructuring and store closings in the fourth quarter of 2015. Macy's cut its fourth-quarter earnings guidance to $2.18 to $2.23 per diluted share, excluding those charges, versus a consensus forecast of $2.53 per share, according to Thomson Reuters.

Peter Foley | Bloomberg | Getty Images

Shoppers pay for items at a Macy's store in New York.

Macy's said that comparable sales fell by 4.7 percent in November and December combined on an owned plus licensed basis. The same metric fell by 5.2 percent on an owned basis.

The company reiterated that it plans to close 36 stores this spring. Four other locations were closed last year.

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Macy's shares fell as much as 4 percent in extended trading Wednesday before reversing and rising 5 percent.

The stock suffered through a rough 2015 and has fallen more than 40 percent in the last 12 months. Macy's has faced significant pressure from activist shareholders amid the sluggish sales run.