The American department store chain wants to pull out of weaker shopping malls across the country and focus on launching smaller format stores in strip malls.

It is also bidding to slash almost 10% of its headcount in central functions, with 2,000 job losses planned across its headquarters in Cincinnati and its San Francisco technology hub, which will be closed. All of its tech functions will be carried out at offices in New York City and Atlanta instead.

Macy’s radical cost-cutting plans come just a month after it reported a disappointing Christmas trading period. Like-for-like sales slipped 0.6% at its owned and licensed stores in November and December, though this beat analysts forecasts of a 1.7% decline.