• Macy's CEO Jeff Gennette informed affected workers on Monday that the company would be closing its San Francisco tech office, according to employees there. A spokesperson for the company confirmed the news to Business Insider. 
  • Employees from two of Macy's tech offices told Business Insider that workers were told they would either lose their job or have the option to apply for a job at a sister office. 
  • Rumors about Macy's plans to close the San Francisco office have been circulating online for the past month, but workers said they had been left in the dark until Monday.
  • There are over 1,000 workers at this office, around 200 of which are contract workers.
  • Visit Business Insider's homepage for more stories.

Macy's workers at its tech office in San Francisco have been bracing themselves for some bad news for weeks. On Monday, Macy's CEO Jeff Gennette confirmed suspicions and informed affected employees that their office would be closing on April 1. 

Two employees at Macy's tech offices in San Francisco and Atlanta told Business Insider that workers were told that they could apply for jobs at other Macy's offices in New York or Atlanta. However, there was no guarantee that all workers would get new jobs and those that don't face being laid off. 

A spokesperson for Macy's confirmed the news to Business Insider on Tuesday. 

"After careful consideration, Macy's offices in San Francisco will close. The functional operations that currently sit in the 680 Folsom location, including Macy's Product and Digital Revenue, .com and Macy's Technology will move into our locations in New York City and Atlanta," the spokesperson said. 

She added: "Eligible colleagues will be given severance, including outplacement resources, and some will have the opportunity to transfer."

The spokesperson said that there are 880 full-time workers at this office and around 200 contract workers. A notice sent to the state of California confirms that 831 jobs will be impacted. These range from senior management positions to analysts and engineers. 

An employee from Macy's Atlanta office who wished to remain anonymous so they could speak frankly — but whose identity was confirmed by Business Insider — said that a colleague of theirs from San Francisco was told they would lose their job and would be offered eight weeks of severance pay. 

Reports that Macy's was considering closing its San Francisco office have been circulating online for the past month. 

In earlier conversations with Business Insider, three employees at Macy's San Francisco office expressed concerns that Macy's was keeping their status in the dark. These employees — whose identities we confirmed — also spoke to Business Insider on the condition of anonymity for fear of retribution. 

"Every Friday we see last day emails," one Macy's tech worker in San Francisco told Business Insider.

"Those who haven't agreed to be moving are most likely to be fired, except select few who are exceptional and want to be retained by the company," this employee said. "There are some employees who just don't believe in this and are just waiting to get fired."

The department store chain has been taking steps to cut costs as growth as sales continue to slow. This has included closing as many as 30 underperforming stores in early 2020.

A spokesperson for Macy's previously told Business Insider that it would update investors on any store closings and its strategy for the year at its investor day, which is scheduled for Wednesday.

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