U.S. Department store chain Macy’s is slashing more than 2,300 jobs and closing five stores, as the company said it’s trying to streamline its operations, according to a company spokesperson. The layoffs make up 3.5% of the overall workforce of the company.

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The company operated 722 locations back in January 2023, of which more than 560 are Macy’s stores, and employed 94,570 full-and-part-time employees, not including seasonal hires. The department store chain’s incoming CEO Tony Spring is reportedly focused on cutting expenses on promotions to boost margins as the company continues to recover from an excess of inventory in 2022.

Macy’s also announced its list of upcoming closures. A spokesperson said the company is still evaluating the “right mix of on-and-off-mall locations.”

According to the Wall Street Journal, which first reported the story, the job cuts will reportedly occur on Jan. 26, 2024. The layoffs come as the retailer beat analysts’ estimates for quarterly profit on lower inventories and strong demand for beauty product in November.

According to Reuters, a Macy’s company spokesperson said the layoffs were part of its plan “to deploy a new strategy to meet the needs of an everchanging consumer and marketplace.”

The announcement of job cuts is in the midst of pressure by Macy’s investor group. The investor group, consisting of Arkhouse Management and Brigade Capital is pushing the retailer to go private in a $5.8 billion offer, as reported by Reuters in December.