Macy's, Inc. announced that it will implement focused cost reductions, including organizational changes, as it prepares to sustain profitable sales growth in the years ahead. Changes being announced are estimated to generate savings of approximately $100 million per year, beginning in 2014. These savings are incorporated in the company's 2014 earnings guidance.

Realigning, combining and reducing some positions in Macy's stores in a manner that improves productivity and efficiency while also fostering high standards for customer engagement and service. Trimming certain central office, administrative and back-of-the-house expenses across the company. This involves reductions in workforce, as well as in non-payroll costs.

Approximately 2,500 employees are expected to be laid off and are eligible for severance as a result of these organizational changes. Other associates are being reassigned with new duties or transferred; some open positions will not be filled. Meanwhile, the company continues to add positions in other parts of the company -- such as in online operations, direct-to-consumer fulfillment and new stores.

In total, the Macy's, Inc. workforce is expected to remain at a level of approximately 175,000 associates. The company is announcing that it will close the five Macy's stores in early spring 2014. Final clearance sales will begin on Jan.

13, 2014 and run for between 10 and 11 weeks. The stores were, Fiesta Mall, Mesa, AZ (159,000 square feet; opened in 1979; 98 associates); Metcalf South Shopping Center, Overland Park, KS (216,000 square feet; opened in 1967; 88 associates); Jamestown Mall, Florissant, MO (200,000 square feet; opened in 1994; 88 associates); Medley Centre, Irondequoit, NY (129,000 square feet; opened in 1990; 96 associates); Fashion Place Mall, Murray, UT (26,000 square feet; opened in 1988; 42 associates). The company is committed to treating associates affected by store closings with respect and openness.

Associates displaced by store closings may be offered positions in nearby stores where possible. Eligible full-time and part-time associates who are laid off due to the store closing will be offered severance benefits.