.CINCINNATI (AP) – Macy’s Inc. said Wednesday it will cut about 2,300 management jobs, including 950 at Minneapolis-based Macy’s North, as the department store operator consolidates three regional divisions and decentralizes buying in a bid to reduce costs and boost sales.

The announcement came as Macy’s announced separately that it had a steeper-than-expected drop in sales in January at established stores and that earnings in its fiscal year would be below Wall Street estimates. Shares fell almost 5 percent on the news.

The Cincinnati-based retailer has been struggling with disappointing sales and resistance from shoppers in some markets where the Macy’s name replaced local favorites it absorbed as part of its acquisition of May Department Stores Co. in 2005 amid efforts to build a national brand.

Macy’s said it will immediately begin consolidating 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 consolidation of the office organizations expected to be completed in the second quarter of 2008 will affect 950 positions at Macy’s North, 850 positions at Macy’s Midwest and 750 positions at Macy’s Northwest in Seattle.