Federated Slashes 367 May Jobs

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The fallout from the consolidation of Federated Department Stores Inc. and May Department Store Co. continued Monday with Federated’s announcement that 367 jobs would be cut at Robinsons-May locations in the Los Angeles area.


Last week, Cincinnati-based Federated handed out 60-day notices to local department store workers as well as 265 employees at Foley’s in Houston, 595 at Hecht’s-Strawbridge’s in Arlington, Va., and 582 at Filene’s-Kaufmanns in Boston. Effective March 1, the company also eliminated 490 jobs at May offices in St. Louis.


These pink slips could be just the beginning. Terry Lundgren, chief executive of Federated, said in September that the company could slash many as 6,200 jobs. Across its about 900 stores, the combined company has an estimated 112,000 workers.


As a result of its $11 billion purchase of May, Federated is closing selling or closing over 80 department stores, many in malls with both Federated and May units. In Southern California, more than 20 stores are slated to be shuttered, about half of which are in the Los Angeles area.


The remaining stores with May nameplates, most notably Robinsons-May, will become Federated’s Macy’s and Bloomingdale’s stores. Later this year, Federated expects to convert more than 400 May stores throughout the country to Macy’s.

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