WHITE MARSH, MD—Macy’s plans to furlough the majority of its workforce as the coronavirus pandemic continues to take its toll on companies across the country.
The company announced the move in a statement on Monday morning.
All Macy’s stores have been closed since March 18 due to COVID-19. Since that time, the company has taken measures to maintain financial flexibility, including suspending the dividend, drawing down their line of credit, freezing both hiring and spending, stopping capital spend, reducing receipts, cancelling some orders, and extending payment terms.
“While these actions have helped, it is not enough,” the company said in Monday’s statement. “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. There will be fewer furloughs in our digital business, supporting distribution centers and call centers so we can continue to serve our customers online. At least through May, furloughed colleagues who are enrolled in health benefits will continue to receive coverage with the company covering 100% of the premium.”
The company added that it expects to bring employees back on a staggered basis once business resumes.