Macy’s, Gap, and Kohl’s will furlough thousands of workers without pay, as retailers around the world face plummeting apparel sales spurred by Covid-19 social distancing efforts.
Retail workers make up a massive chunk of the U.S. labor force. Preliminary figures in February from the U.S. Bureau of Labor Statistics put seasonally adjusted retail employees at 15.7 million, or about 9.8% of all civilians employed.
Macy’s (ticker: M) said the majority of its around 125,000 employees would go on furlough starting this week. The people affected will not receive pay, though anyone enrolled in health benefits will receive coverage covering 100% of the premium—at least through May. The company owns the namesake Macy’s brand, as well as Bloomingdale’s and Bluemercury.
Macy’s has previously said it would reduce pay at all levels of management at the director level and above, from April 1 through the duration of the crisis, adding CEO Jeff Gennette would not receive compensation during the period.
Gap (GPS), which owns the Gap, Banana Republic, Old Navy, Athleta, Intermix, Hill City, and Janie and Jack brands, said it will furlough the majority of its store teams in the U.S. and Canada. The company ended its latest fiscal year on Feb. 1 with a workforce of about 129,000 people.
The Gap furlough decision impacts about 80,000 people, according to The Wall Street Journal. Gap will continue to offer applicable benefits to those furloughed until stores reopen. The company is also reducing its corporate head count. Its leadership team and board of directors will also take a reduction in pay. On Gap’s corporate website, it offered resources to those affected, including a list of retailers still hiring, which includes Walmart, Walgreens Boots Alliance, and Amazon.com.
Kohl’s (KSS) extended the duration of its store closures until further notice, and said it would furlough store and store distribution center associates, as well as some corporate associates. It will also continue to provide existing benefits. During 2019, the company employed an average of 122,000 associates, which varied by the time of year.
Two weeks ago 3.28 million Americans filed for unemployment—a number that’s sure to rise given a string of employers furloughing employees. The Cares Act, signed by President Donald Trump on Friday, includes $250 billion in funding for expanded unemployment insurance benefits.
Write to Connor Smith at connor.smith@barrons.com
Business - Latest - Google News
March 31, 2020 at 08:19AM
https://ift.tt/348J80V
Macy’s, Gap, and Kohl’s Furlough Thousands of Workers - Barron's
Business - Latest - Google News
https://ift.tt/2Rx7A4Y
Bagikan Berita Ini
0 Response to "Macy’s, Gap, and Kohl’s Furlough Thousands of Workers - Barron's"
Post a Comment