Macy's Furloughing Most Of Its 130K Employees Because Of Coronavirus Store Closures
NORTH TEXAS (CBSDFW.COM/CNN) - Affecting employees at more than a dozen stores in North Texas, Macy's is furloughing a majority of its 125,000 employees because of the ongoing coronavirus pandemic.
Even before shopping malls across the state closed their doors, sales had taken a nosedive.
The company said Monday the pandemic had taken a "heavy toll" on its business. Macy's, which also owns Bloomingdale's, closed all of its 775 stores in the United States earlier this month to slow the virus from spreading, and because of stay at home orders in North Texas and the nation, non-essential businesses -- including retailers -- were forced to close.
Macy's painted a bleak picture of its already perilous financial situation. The company said that it has lost a "majority" of sales because of the brick-and-mortar closures and has implemented other changes to bolster its bottom line, including drawing down its credit line and freezing hiring and spending.
"While these actions have helped, it is not enough," the company bluntly said. Macy's is "moving to the absolute minimum workforce needed to maintain basic operations." That is resulting in furloughs for a "majority" of its employees beginning this week. Affected workers will still get the company-funded health care for at least through May.
Macy's CEO Jeff Gennette and the company's board of directors will stop receiving their salaries, according to a regulatory filing.
While brick and mortar stores will be closed for months, Macy's websites remain open for orders. The company will furlough fewer workers at its digital operations and distribution and call centers, Macy's said, but online sales make up just a fifth of Macy's overall revenue.
The company said they are planning to bring workers back on a staggered basis as when retailers are allowed to reopen.
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