Macy’s To Furlough Majority Of Employees Due To Sales Losses
The holding company’s subsidiaries include Macy’s, Bloomingdale’s and Bluemercury.
“While the digital business remains open, we have lost the majority of our sales due to the store closures,” Macy’s said in a statement.
Macy’s said it will have fewer furloughs on the digital side in areas such as distribution centers and call centers.
The company closed all stores nationwide on March 18 in an effort to curb the spread of the virus.
“While these actions have helped, it is not enough,” the company added. “Across Macy’s, Bloomingdale’s, and Bluemercury brands, we will be moving to the absolute minimum workforce needed to maintain basic operations.”
Macy’s mentioned that furloughed workers enrolled in health benefits will continue to receive coverage through May.
“We’ve already taken measures to maintain financial flexibility, including suspending the dividend, drawing down our line of credit, freezing both hiring and spending, stopping capital spend, reducing receipts, cancelling some orders and extending payment terms, and we are evaluating all other financing options,” the company said.
According to its website, Macy’s had roughly 130,000 employees, excluding seasonal staff, as of February 2. The retailer was operating 551 Macy’s department stores, 34 Bloomingdale’s locations, 19 Bloomingdale’s outlets and 171 Bluemercury shops as of the latest reported quarter.
In addition to the furloughs, Macy’s said last week that its CEO, Jeff Gennette, will not receive compensation starting April 1. That will continue until the end of the coronavirus pandemic. The statement added that the company would also reduce pay for the period for all executives at management director level and above.
“We expect to bring colleagues back on a staggered basis as business resumes,” Macy’s said in the statement.