Fewer stores in operation, less of a need for high-powered executives delegating from the corner office.
At least that what could be gleaned from Macy's (M) announcement on Friday. The department store retailer, which is fresh off reporting weaker-than-expected holiday sales and announcing a new round of store closures, said it fired Chief Growth Officer Peter Sachse. He will be "involuntarily separating" from Macy's effective Jan. 30, according to a filing with the Securities and Exchange Commission.
The 34-year veteran of the company -- promoted in February 2016 to oversee all of Macy's merchandising, the Backstage and Bluemercury concepts and international expansion -- will receive a lump sum payment of $2.7 million. Sachse's responsibilities have been delegated to other employees inside Macy's as part of its recent restructuring, a spokeswoman told TheStreet.
Macy's will save a few bucks in the process: Sachse was the third-highest-paid exeuctive at Macy's in 2014 and 2015, earning $900,000 in salary each year, per the company's proxy filing. Only Chairman and CEO Terry Lundgren ($1.6 million) and President and soon-to-be CEO Jeff Gennette ($1 million) hauled in more. Sachse earned as much as Macy's well-regarded Chief Financial Officer Karen Hoguet, who commanded a $900,000 annual salary, and has held her position since 1997.
Sachse's departure could be the first of many high-profile exits at Macy's this year for several reasons.
First, Macy's has said it will close 68 stores by early spring and dive into a deeper reorganization, leading to roughly 10,100 people being displaced. The company reiterated that it expects to close 100 stores over the next few years.