Macy's, the powerhouse of department store tradition, is whittling down its workforce by around 3.5% and closing five full-line stores, a move confirmed on Thursday by a company spokesperson. As the retail giant grapples with the changing terrain of consumer behavior and marketplace demands, the decision to cut approximately 2,350 jobs was described as an effort to streamline operations, according to a statement obtained by Retail Dive.

Among the locations slated for closure is a store in San Leandro's Bayfair Center, on the brink of a vast redevelopment with a strong focus on residential units. This closure alone, as reported by Mercury News, will result in the loss of 66 jobs. In a letter to the California Employment Development Department, Alison Johnson, Macy's senior HR partner, indicated job eliminations between March 19 and March 31. The company plans to offer impacted employees information on potential transfers to adjacent Macy's outlets.

The retail behemoth, which is no stranger to the ritual of post-holiday downsizing, is making these cuts despite a reported uptick in December spending by American consumers, according to the Commerce Department. This news surfaces following an unconfirmed report last month that a group of investors was weighing a takeover bid for the storied retail chain, as detailed in an Axios article.

Both store closures and layoffs are not uncommon in the retail sector, where adapting to market conditions is a continuous struggle. Seemingly trapped between the need to please investors and the urgency to reinvent the retail experience, Macy's is taking definitive actions under incoming CEO Tony Spring. Neil Saunders, Managing Director of GlobalData, pointed out in comments emailed to Retail Dive, that "this strategy comes with an expiry date; ultimately no retailer can shrink itself to success."

While the full impact of these closures is yet to be ascertained, it is clear that the traditional department store model is being rigorously reevaluated. In addition to the San Leandro store, closures have been announced in Simi Valley, Tallahassee, Lihue, and Arlington. Axios reports that clearance sales at these locations are expected to last 8-12 weeks as the company forges ahead with its plan to reposition itself in a retail landscape that is rapidly evolving beyond the mall.