Macy's Inc. M, -5.17% said Thursday that it will cut 3,900 workers across corporate and management roles, as well as store staff, supply chain employees and the customer service network due to the impact of COVID-19. The restructuring is a cost-cutting effort as the department store retailer recovers from the pandemic. "While the re-opening of our stores is going well, we do anticipate a gradual recovery of business, and we are taking action to align our cost base with our anticipated lower sales," said Jeff Gennette, chief executive officer of Macy's, in a statement. "Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company." Macy's expects to save $365 million in fiscal 2020, and $630 million on an annualized basis. Restructuring costs are expected to be $180 million. Macy's had 123,000 workers as of February 1; many were furloughed at the end of March. Most of the remaining furloughed staff will return to work on July 5. Macy's said earlier this month that reopened stores were outperforming. The company also announced that it will move forward with its annual New York City July 4th fireworks display with unannounced smaller displays over a couple of days next week to reduce crowds and encourage social distancing. Macy's stock fell 3.1% in Thursday premarket trading and is down more than 60% for the year to date. The S&P 500 index SPX, -2.58% has fallen 5.6% for 2020 so far.