The retailer’s digital business will remain open, however, the company said it will furlough of the majority of its employees this week.
Macy’s employs about 130,000.
The retailer said it 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. “ While these actions have helped, it is not enough,” Macy’s wrote in a press announcement.
“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. We expect to bring colleagues back on a staggered basis as business resumes,” stated the company.
On March 25, Macy’s announced that it would reduce pay for all levels of management director level and above, effective April 1 and lasting for the duration of the crisis. Additionally, Macy’s said Jeff Gennette, chairman and CEO, would not receive compensation during this period.