Macy’s is furloughing most of its 125,000 employees amid prolonged coronavirus shutdown
30 Mars, 2020, 20:35 | Auteur: Auguste Feret
Iconic American department store chain Macy's on Monday announced it would furlough most of its employees after the coronavirus outbreak forced it to close outlets.
The company said it will keep "the absolute minimum workforce" for basic operations, with a focus on its digital business, distribution centers and call centers. "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".
Macy's closed all of its stores this month, more than 500, as the coronavirus spread. That is resulting in furloughs for a "majority" of its employees beginning this week. Its online business remains open, but the company said it has lost the majority of its sales due to the store closures.
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"At least through May, furloughed colleagues who are enrolled in health benefits will continue to receive coverage with the company covering 100 percent of the premium", the company said.
Macy's will continue to serve its customers through digital businesses (Macys.com, Bloomingdales, and Bluemercury brands) and through its mobile apps. "We expect to bring colleagues back on a staggered basis as business resumes".
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