Retail

Macy's to shut San Francisco tech offices, cut some jobs

Key Points
  • Macy's said it will offer severance to eligible staff at the offices, which are located at 680 Folsom, and some workers will be able to transfer.
  • Macy's is moving its operations in these offices, which include Macy's product and digital revenue segments as well as its online and technology groups, to New York City and Atlanta.
People walk past Macy's flagship store in Herald Square in New York City.
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Macy's is shuttering its tech offices in San Francisco, a spokeswoman confirmed to CNBC, in a bid to streamline its business.

The department store chain said it will offer severance to eligible staff at the offices, which are located at 680 Folsom, and some workers will be able to transfer. Macy's said its operations in these offices, which include product and digital revenue segments as well as its online and technology groups, are moving to New York City and Atlanta.

"We believe these changes will eliminate any duplication of efforts, bringing these teams closer to our business teams and strategy," the spokeswoman said.

Macy's said it will keep its 20 stores in the San Francisco area, include its flagship at Union Square.

It wasn't immediately clear how many jobs will be affected by the technology offices closing there.

Macy's is also reportedly closing its headquarters in downtown Cincinnati, where it has 500 employees. It is making its new headquarters New York, the Cincinnati Business Courier reported Tuesday afternoon, where some workers will be relocated, while other jobs are being cut.

Macy's didn't immediately respond to a request for comment on this report.

The news of the office closures comes ahead of Macy's holding an investor meeting in New York on Wednesday morning.

The department store chain must prove to Wall Street it has the right plans in place to get back to sales growth.

Macy's shares were up about 1.5% Tuesday afternoon, having fallen about 35% over the past 12 months. Macy's has a market cap of about $5.2 billion.

Business Insider first reported on the offices closing earlier on Tuesday.

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