MESA, AZ - The Macy's store at Fiesta Mall is closing, as part of the company's reorganization to sustain its profitability.
The announcement comes on the heels of a strong holiday shopping season for the department store chain.
Macy's said Wednesday that it will cut 2,500 jobs, reassign or transfer some workers and add some positions, leaving its workforce level at about 175,000.
The Cincinnati-based company plans to close five stores and open eight others, leaving it with 844 stores nationwide once the changes are complete.
The 159,000-square-foot store at Fiesta Mall opened in 1979 and has 98 employees. Eligible employees who are laid off will be offered severance benefits, said a company spokesperson.
Final clearance sales will begin Jan. 13 and run for at least 10 weeks, according to an online release.
Macy's says the moves will save it $100 million per year and forecast a 2014 profit above Wall Street's forecasts.
The news sent its shares up 5.5 percent in after-hours trading.