More bad news for retail.
Macy's said about 7,000 jobs -- about 4% of its total employee base -- would be eliminated as part of an effort to save $250 million this year and $400 million annually starting in 2010.
The Macy's board also approved a 62% reduction in its quarterly dividend, down to 5 cents a share from the current payout of 13.25 cents, while the company commenced a tender offer to redeem $950 million in debt set to mature later this year.
The company cited "current economic conditions and expectations for lower sales in 2009" as precipitating the moves.
Not surprising for retail. Folks who have money are not spending, those without money are looking for a job. This is called a vicious circle.