(CNN/KYTX) - Macy's says it is cutting 2,500 jobs and closing five of its stores.
The retail giant says it is reorganizing after a strong holiday shopping season. The move comes as part of a bigger shake-up at the department store operator. The company -- which also operates Bloomingdale's -- estimates it still employs roughly 175,000 associates in 844 stores.
Eight new stores announced recently are still planned, despite the cut-backs. Investors appeared encouraged by the move, which officials say will save the company $100M a year. Macy's shares rose 6.4% after the announcement.