Macy’s announced that it would be eliminating 7,000 Jobs.

The 7,000 jobs amount to just under 4 percent of its workforce and will save the company $250 million this year, and $400 million per year starting in 2010. The company plans to buy back as much as $950 million in bonds due this year.

“The overriding message is a simple confirmation that the retail environment is tough and likely to stay that way,” said Patricia Edwards, a retail analyst. “This is a time when retailers are in survival mode.”

Macy’s is in the process of reducing costs after massive Holiday sales failed to bolster revenues. Their profit for ’09 is expected to be half of what it has been in previous years.

Sales at locations that have been open at least a year are expected to fall up to 8 percent this year, and same-store sales fell 4.6 percent last year.

Credit-defaul swaps protecting against a default by Macy’s rose to 672 basis points, according to CMA DataVision.

Macy’s stock fell 4% on the NYSE composite trading, down to $8.59. In March of 2007, the stock reached a high of $46.51.

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