Department store giant Macy's said it will furlough the majority of its employees beginning this week, as stores have remained closed during the coronavirus, The Wall Street Journal reported.
Macy’s stores have been closed since March 18.
Macy’s will furlough the majority of its roughly 130,000 employees as sales evaporate, but will pay health benefits through at least May https://t.co/3K1miFK7nc
— wsj (@WSJ) March 30, 2020
The department store chain, which employs approximately 125,000 people, told its staff Monday that it will keep paying health benefits and cover 100% of premiums, at least through May, according to the WSJ.
Macy’s continues to sell products online, but said it has suffered a severe drop in sales because of the pandemic. The company said it would retain some employees to support its e-commerce operations, call centers and distribution centers, the newspaper reported.
In a statement Monday, Macy's said it attempted other moved to help its finances, including suspending its dividends, implementing a hiring freeze and canceling orders, CNBC reported.
"While these actions have helped, it is not enough," Macy's said in a statement. "Across Macy's, Bloomingdale's, and Bluemercury brands, we will be moving to the absolute minimum workforce needed to maintain basic operations."
In the latest quarter, the company was operating 551 Macy's department stores, along with 34 Bloomingdale stores and 171 Bluemercury shops, CNBC reported.
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