(CBSNewYork) — Retailing giant Macy’s, headquartered in New York, announced staff reductions today that will affect management and workers across various levels of its organization. The layoffs include 3,900 people in corporate and management roles. The company has also cut staff in its stores and throughout its supply chain and customer support network.

“COVID-19 has significantly impacted our business,” according to Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “While the re-opening of our stores is going well, we do anticipate a gradual recovery of business, and we are taking action to align our cost base with our anticipated lower sales.”

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The company, whose brands include Macy’s, Bloomingdale’s and Bluemercury, expects the moves will save $395 million in 2020 and $630 million annually going forward. It also believes the restructuring will promote its competitiveness in the changing marketplace. Macy’s will start to welcome furloughed employees back in early July.

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The struggles of big-box retailers are well documented, and the economic issues brought on by coronavirus have only exacerbated them. Back in February, Macy’s announced its intention to close 125 stores and lay off 2,000 corporate workers over the next few years. In March, as the pandemic gained strength, the retailer temporarily closed all 600 of its stores, pushing all sales online.

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Even as the economy around the country continues to open up, companies like Macy’s face a challenging future.