Macy’s Inc is cutting 2500 jobs as part of a reorganisation to sustain its profitability.

The announcement comes on the heels of a strong holiday shopping season for the department store chain.

Macy’s said on Wednesday that it will 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 US stores and open eight others, leaving it with 844 stores across the country once the changes are complete.

Macy’s says the moves will save it $US100 million ($A112.43 million) per year and forecast a 2014 profit above Wall Street’s forecasts.

The news sent its shares up 5.5 per cent in after-hours trading.

AP