Macy’s will lay off roughly 1,000 workers as the department store continues a culling of its distribution and store network.
The retailer is shuttering its two fulfillment center facilities in Cheshire, Conn., resulting in the permanent elimination of 993 jobs, according to a Worker Adjustment and Retraining Notification (WARN) Act notice provided by the company. Macy’s had operated in the town since 1986.
With the closure, Macy’s would be laying off 1 percent of its employees. As of Feb. 1, the retailer had approximately 94,189 full-time and part-time U.S. employees across the Macy’s and Bloomingdale’s banners.
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The closures in Cheshire follow recent news that another Connecticut distribution center in South Windsor would also be shuttered in March. The South Windsor closure resulted in 163 layoffs, with the first 106 occurring before Jan. 10. That facility had already been flagged for the closure of its Backstage operating unit back in October, before Macy’s announced earlier this month it would fully shutter the entire distribution center.
The latest decision was made “as part of our ongoing work to modernize our supply chain to better serve customers, while simplifying how we operate,” a Macy’s spokesperson said. “We are grateful to have been a part of these communities and appreciate the important role each facility and its colleagues have played in supporting our customers over the years.”
Macy’s is offering transfer opportunities to employees where available and severance and support where applicable.
Of the employees being let go at the 719,000-square-foot Cheshire fulfillment center complex, 485 were fulfillment associates and 193 were power equipment operators. Another 72 had roles in inventory control and quality assurance.
The layoffs will stagger across different departments based on position, with night operations and talent acquisition expected to be terminated by March 14. Two employees who work at the shuttering Bloomingdale’s Photo Studio at the complex are also being laid off in March, according to the WARN notice.
Part-time operations workers will be employed until April 4.
Full-time operations staff will stay on for four months longer. Weekend employees are set to be dismissed on Aug. 1, while the job cuts to weekday personnel will go into effect Aug. 29.
Employees working in maintenance and asset protection will also be terminated Aug. 29. A small number of staff in these segments have been told they will remain employed through April 16, 2027 to handle the decommissioning process.
Macy’s employees have no bumping rights. If the employees are rehired at a later date, they will get benefits and pay in accordance with the then-existing policies.
The town has been in contact with Macy’s management, the Northwest Regional Workforce Board and the Connecticut Department of Labor to coordinate assistance for affected workers, including plans for a job fair and access to employment and transition resources.
In May 2023, Macy’s divested one of the Cheshire warehouses in a sale-leaseback deal to a joint venture of Wharton Equity Partners and real estate developer Rabina for $25.3 million. The retailer still occupied the site after the deal took place, but the property went on the market again in September.
Earlier this month, the department store said it would be closing 14 stores in 12 states. None of the six Macy’s locations in Connecticut were impacted.
The fulfillment center closures in Connecticut coincide with the anticipated closure of a 2.2 million-square-foot direct-to-consumer fulfillment center in Owasso, Okla. on March 28.
It is unclear how many employees are impacted by Oklahoma site’s closure. Roughly 1,500 full- and part-time associates were employed at the fulfillment center year-round.
That facility served Macy’s and Bloomingdale’s customers, having operated since August 2015.
Macy’s has been giving its distribution network a face lift as part of its three-year “Bold New Chapter” reinvigoration strategy.
In a letter to employees on Jan. 8, Macy’s CEO Tony Spring cited “faster, more reliable operations, supported by our modernizing supply chain” as one of four pillars that reinforced the initiative’s progress.
The company recently opened a 2.5-million-square-foot automated fulfillment center in China Grove, N.C. that serves as doubles as an e-commerce fulfillment and store replenishment location. The site accounts for roughly 30 percent of Macy’s digital supply chain capacity, and onboarded 800 employees by the end of 2025. When the $640 million project was first announced in 2022, the retailer said the site would employ nearly 2,800 workers.
According to Macy’s 2024 annual report, the retailer will operate 22 distribution or fulfillment centers within its logistics network after the Connecticut and Oklahoma locations shutter.
