By Annie D'Innocenzio
NEW YORK - Macy's Inc. is cutting 2,500 jobs as part of a reorganization to sustain its profitability.
Shares rose 5.5 percent in after-hours trading Wednesday.
The announcement comes on the heels of a strong holiday shopping season for the department store chain, which also runs the higher-end Bloomingdale's chain.
Macy's said the moves will save it $100 million per year and forecast a 2014 profit above Wall Street's forecasts.
Macy's has been a standout among its peers throughout the economic recovery and has reaped the benefits of its strategy of tailoring merchandise to local markets. But like other merchants, Macy's is grappling with a still cautious shopper. It's also trying to respond to shoppers' shift toward buying and research on their PCs and mobile devices like smart phones.
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