Macy's is closing its Downtown headquarters two years after shuttering its flagship store at Fountain Place, the company confirmed Tuesday.

"After careful consideration, Macy’s offices at 7 West 7th in Cincinnati will close," Macy's said in a statement.

The company said it will shift an unspecified number of jobs to Springdale, where it has about 480 employees. That number will grow to 950 after the Downtown headquarters closes, according to a company spokeswoman.

In addition, a call center in Deerfield Township will also add positions – including 600 new hires to replace work handled by an Arizona call center that is shutting down.

The moves are all part of a broader blood-letting by Macy's, which said Tuesday it would cut 2,000 corporate jobs and 125 stores over the next three years.

The struggling retailer's consolidation of its headquarters operations in New York City will displace a total of about 500 local workers, according to multiple media reports.

More:Macy's HQ leaving downtown Cincinnati signals it's time to embrace a new economy

The struggling retailer is the second Fortune 500 headquarters to leave the region in the last two months.

City leaders said they were disappointed by the news.

Macy's "has been a staple in Cincinnati for a long time. I appreciate everything they've done for our community, but disappointed to learn they're closing their downtown HQ and displacing 500 families who helped make them into the powerhouse store they are today,'' Councilman Chris Seelbach said in a Tweet.

Cincinnati USA Regional Chamber President & CEO Jill P. Meyer admitted it hurt to lose a major headquarters but noted the region is still retaining some of the Macy's jobs.

“Macy’s will continue to be an influential and important part of our regional economy as the company shifts some jobs to Springdale," Meyer said. "Although we understand that we’ve had special status as a co-HQ with New York, we are glad that Macy’s values their long history with Cincinnati and appreciate the commitment to a continued presence in the region moving forward."

Mayor John Cranley expressed concerned for the Macy's workers who are reportedly either losing their jobs or being relocated.

"We appreciate the hard work Macy's local employees have put in over the last several years and hope those employees will stay in our community,'' read Cranley's Tweet.

Workers outside the headquarters Tuesday afternoon told an Enquirer reporter they had been instructed not to talk to the media.

Move surprises few

The exit could have a big impact on Cincinnati, where Macy's sponsored a variety of cultural institutions and events.

But Macy's said it remains committed to the local area.

"Macy’s remains an active member of the Cincinnati community, employing more than 3000 at its locations as well as its five area stores... . Macy’s will also proudly continue its support of organizations in Cincinnati,'' the company's statement reads.

Macy's departure came as no surprise to industry watchers, who noted the struggling retailer has been moving its senior leadership to New York City for years.

New York City will become the company’s sole corporate headquarters.

"We've not seen senior leadership here in a long time,'' said Doug Moormann, vice president of Development Strategies Group – a Cincinnati-based economic development consultancy.

"It set an expectation that they (Macy's) would probably consolidate their headquarters in New York City and bring in functions like human resources, real estate and accounting.''

Moormann said one of the biggest factors working against Macy's headquarters in Cincinnati boiled down to simple math.

"When you reduce the number of stores the way they have, you need fewer people for human resources and other back-office functions that are performed in Cincinnati,'' he said.

In addition to its downtown Cincinnati office, Macy's will close offices in San Francisco and Lorain, Ohio. The company will also close its Tempe, Ariz., customer contact center and consolidate customer service work into its Mason and Clearwater, Fla., facilities.

A shrinking Fortune 500 roster

Macy's latest move is yet another blow to Cincinnati’s roster of Fortune 500 companies, which took a previous hit in December when West Chester-based AK Steel announced it was being acquired.

The downgrade would leave just six Fortune 500 companies in the region: Kroger, Procter & Gamble, Fifth Third, Western & Southern, American Financial Group and Cintas.

In the last five years, Macy’s has struggled to compete and grow in an increasingly digital age in retail.

The company was a Wall Street darling until 2015 when it missed a string of sales targets and the stock began to plummet. The company quickly faced intense pressure to slash stores and other expenses and to sell assets, including pricey real estate.

In recent years, Macy’s has reviewed its real estate holdings (historically, it’s owned most of its stores) and sold off all or parts of its most expensive store properties in cities such as New York and San Francisco.

Since 2015, Macy’s has slashed 40,000 jobs. It still employs 130,000 mostly store employees.

While Macy’s total store count has increased from 823 in 2015 to 867 last year, the company has been slashing traditional department store formats in favor of smaller, less-expensive locations.

Not surprisingly, Macy's shareholders have driven its stock price down to a fraction of its 2015 peak of more than $70.

Macy's shares closed Tuesday at $16.47, up 1 cent from Monday's close.

Enquirer reporters Deon J. Hampton and Madeline Mitchell contributed to this report.