Macy’s announced last month that it would lay off roughly 2,350 employees|Mike Mozart|CC BY 2.0

Macy’s is making a bold retail transformation, announcing plans to shutter 150 of its underperforming stores while doubling down on its luxury offerings to boost sales.

The troubled retailer intends to streamline its operations and focus on 350 locations with profitable stores.

To enhance its luxury segment, Macy’s will expand its presence with the addition of 30 new Bluemercury stores and 15 Bloomingdale’s outlets.

The company announced last month that it would lay off about 3.5% of its workforce, roughly 2,350 employees.

Despite the uncertainty, Macy’s stock climbed over 3% on Tuesday.