Shares of Macy's (M) Plummet on Layoff, Dividend Cut News

Shares of Macy's (NYSE: M) have fallen sharply in mid-day trading on news that the company will be cutting about 7,000 jobs from its workforce, slashing its dividend from $0.135 to $0.05 per share and tendering to offer up to $950 million in senior notes. The retailer also issued FY09 guidance which was well below the Street estimate.

Macy's stock is now down more than 11%, most recently trading at $7.95. The bad news out of the company has pulled other retail stocks down with it: JC Penney (NYSE: JCP) fell 5% on the news, Sears (Nasdaq: SHLD) fell 3.5%, Kohl's (NYSE: KSS) moved 3% lower on the news and even powerhouse Wal-Mart (NYSE: WMT) took a 1% hit.

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