Department store operator Macy's Inc., facing a slowing economy and sliding sales, moved yesterday to cut costs by slashing 2,300 jobs from its web of division headquarters.

At the same time, the Cincinnati retailer will add about 250 positions on the retail front lines so it can boost sales by getting a better read on what customers in local markets want. Pittsburgh will be among the markets that serve as headquarters for small district operations overseeing about 10 stores each.

The announcement of the massive realignment was paired with Macy's report that sales in stores open at least a year dropped 7.1. percent in January, lower than the 4 percent to 6 percent drop the company expected. Investors send Macy's stock down almost 5 percent on the day.

Retail in general has been hit hard lately. Holiday sales grew at the slowest rate in five years as consumers coped with a slowing housing market, a credit crunch and rising food and gas prices. Chains such as Home Depot, J.C. Penney and Charming Shoppes have announced jobs cuts.

Macy's will immediately begin consolidating its Minneapolis-based Macy's North headquarters into its New York-based Macy's East, its St. Louis-based Macy's Midwest organization into its Atlanta-based Macy's South and its Seattle-based Macy's Northwest headquarters into its San Francisco-based Macy's West.

The Pittsburgh region, which had been administered by staff in St. Louis, will now look to Atlanta for direction.

The company said it expects to reduce expenses by about $60 million this year and by about $100 million a year starting in 2009. The company plans to take a one-time charge of $150 million this year for expenses related to the consolidation.

Macy's has been closely watched since it acquired its rival May Department Stores and eliminated regional store names such as Kaufmann's, Marshall Fields and Filene's in favor of a single national name. From the beginning, officials said their goal was to analyze each store around the country and merchandise it appropriately.

But the current system of regional offices hasn't drilled deep enough. "We still don't have enough resources close to the customer," said Jim Sluzewski, Macy's spokesman. The new plan calls for setting up small district operations with about 20 merchandising analysts, merchants and other staff focused on 10 stores.

Pittsburgh will serve as the base for two such groups, he said. One will cover stores in the Pittsburgh-Youngstown, Ohio area, while the second will handle Central Pennsylvania sites such as Johnstown, Altoona, Wilkes-Barre and Scranton.

In addition to helping better understand colors, fabrics and styles that shoppers in Westmoreland Mall might prefer compared with those who shop at South Hills Village, Mr. Sluzewski said district staffs will track whether a store sells out of size 6s quickly but gets stuck with a pile of size 2s.

He said Macy's has been testing technology for the past year that would address the sizing issue. Buying will continue to be handled in centralized offices, allowing the retailer to take advantage of its size.

It isn't clear exactly where the district groups will be stationed physically, but Mr. Sluzewski said the impact of the changes should start to be evident in stores by the next Christmas shopping season.