CINCINNATI - Federated Department Stores Inc., which operates Macy's and Bloomingdale's, said Wednesday it is eliminating 290 positions in a plan to consolidate its data centers.
The company will shut down a systems development and computer operations center in St. Louis, affecting 195 employees. Non-management salaried systems development workers will be offered transfers to Federated Systems Group in Duluth, Ga.
Federated will also scale back the operations of a data center in Lorain, Ohio, affecting 95 employees with the closing of most computer operations and the help desk.
The St. Louis and Lorain data centers were acquired by Federated in its merger with May Department Stores Co., which was completed in Aug. 2005.
The company said all displaced workers will be encouraged to apply for other positions at Federated, and that qualified employees who leave the company will be provided severance and outplacement assistance.
The consolidation and job cuts will begin in early January and end by June 30, 2007, according to Federated, and are part of its goal to save $175 million in 2006 and at least $450 million in 2007 as a result of its acquisition of May.
Shares of Federated Department Stores rose 59 cents to $42.58 in afternoon trading on the New York Stock Exchange.
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