Macy’s announced on Monday that it will furlough the majority of its 130,000 employees due to the “heavy toll” the coronavirus has had on business.
“While the digital business remains open, we have lost the majority of our sales due to the store closures,” the retailer stated in a press release. “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.”
“Across Macy’s, Bloomingdales, and Bluemercury brands, we will be moving to the absolute minimum workforce needed to maintain basic operations. This means the majority of our colleagues will go on furlough beginning this week,” the statement continued.
According to the New York Times, “Macy’s had 130,000 part-time and full-time employees as of Feb. 2.”
All Macy’s stores have been closed since March 18, will stay shut “until we have clear line of sight on when it is safe to reopen.” The retailer claimed they “expect to bring colleagues back on a staggered basis as business resumes.”
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