With a strategy to reduce expenses and in turn increase cash savings, Macy's has decided to cut 7,000 workers from its total workforce of 180,000. The job cuts are being affected at the retailer’s divisional corporate offices, stores and distribution centers. As the company is also undertaking centralising its operations, around 40 percent of executive positions will be lost. The company hopes to achieve a savings of $250 million in 2009 and $400 million in the subsequent following year, in effect of the job cuts. %% The restructuring will also involve closing its division structure and routing all operations into a single organisation. Macy’s planning, central buying, marketing and senior management operations will be centralised in New York, while finance, human resources, law and property development portfolio will be handled in Cincinnati, Ohio. The retailer’s Board also approved reducing the quarterly dividend by 62 percent to 5 cents and has begun a tender offer to redeem $950 million in debt that is maturing later in 2009. Merit salary increases based on 2008 performance and accruing to executives, are also being eliminated. The level at which Macy’s contributes matching funds to employee 401(k) plans will also be scaled down. %% Macy’s has undertaken to expand its venture of My Macy's in the U.S. with the intent to increase sales and to undertake local marketing in its restructuring.