In an attempt to restructure the company's operations, with the aim of reducing costs, US department store giant Macy's Inc. intends cutting 7,000 jobs, hacking its quarterly dividend and grouping stores district-wise for retailing purposes.

The announced layoffs, which comprise nearly 4 percent of the company's existing workforce, would affect store positions, corporate offices and other facilities. The company said that, on an average, five or six positions will be done away with in each of its store, and the move is expected to yield a $400 million yearly saving.

Furthermore, the company announced on Monday that it will be hacking its quarterly dividend, against the backdrop of sluggish sales. With consumers holding back on spending because of the recession, Macy's already anticipates that this year's sales will be fairly low.

Though Macy's did not announce any store closures, it said that its stores will be grouped into geographic districts with an average 11 stores each. The grouping of stores district-wise will result in the localization of merchandising to specific stores, thereby helping the company effectively cater to the needs of local customers.

Commenting on the moves announced by Mcay's, economist and professor Sung Won Sohn, of Cal State Channel Islands, said: "Everyone is trading down. Macy's is considered to be an upscale store. And people have decided to shop at less-expensive stores and stretch their dollars. So stores from Nordstrom to Macy's - they're all hurting!"