Uh-oh! The world-famous department store chain, Macy's Inc. has recently announced some bad news. On Wednesday, Macy's revealed its plans to lay off about 4,350 employees and to shut down 40 stores across the country due to its disappointing holiday sales. The current shakeups at Macy's also proved that the firm has been struggling to attract customers.

In order to help offset its weak 2015 holiday sales, Macy's hopes to reduce costs by $400 million. According to CNN Money, the cost-cutting move will affect about 3,000 sales associates or about three to four per Macy's and Bloomingdale's location. While about 50 percent of the affected store associates will be placed in other positions.

Moreover, the cost-cutting moves will also affect another 1,350 employees in back office and service center positions. But as the company said, some of those affected employees are expected to be reassigned to other jobs. The upper management will also take a hit, with Macy's implementing a "voluntary separation opportunity" for about 165 senior executives.

In line with Macy's cost-cutting strategy, the company also revealed that comparable sales at store open for more than a year declined by 4.7 percent in November and December. The drop was far worse than the projected figures in November. It also axed its earnings outlook for the second time in two months, Reuters noted. And the estimated 80 percent sales decline was due to unusually warm weather. Strong dollar was also blamed for the fall.

"The holiday selling season was challenging, as experienced throughout 2015 by much of the retailing industry," Macy's CEO Terry Lundgren said in a press release on Wednesday. "We were particularly disadvantaged by the historically warm weather in northern climate zones where both Macy's and Bloomingdale's are especially well-represented. We also continued to feel the impact of lower spending by international tourists as the value of the dollar remained strong."

Meanwhile, experts said that the latest warning from Macy's mirrored the ongoing shifts in the retail industry. As a matter of fact, an increasing number of consumers are refraining from buying discretionary items like clothes and cosmetics, while spending more on electronics, cars, home goods and travel. Online stores have also revolutionized shopping habits, persuading shoppers to expect more discounts compared to what brick-and-mortar retailers can offer. They also speeding up delivery in an effort to lure more customers.

Aside from cutting jobs, Macy's is also shutting down 40 locations, following through on an announcement in September, Bloomberg Business reported. The company also faces pressure from activist investor Starboard Value, which wants the retailer to get more value from its property holdings.