Macy’s is furloughing most of its 125,000 employees after losing nearly all its sales due to coronavirus-related store closures, the nation’s largest department store chain said Monday.
Its 839 Macy’s, Bloomingdales and Blue Mercury stores have been shuttered since March 18.
The covid-19 “outbreak continues to take a heavy toll on Macy’s business,” the company said in a statement Monday. “We have lost the majority of our sales due to the store closures.”
The company said it will keep “the absolute minimum workforce” for basic operations, with a focus on its digital business, distribution centers and call centers. Furloughed employees will continue to receive health insurance at least through May. Macy’s said it expects to bring back employees “on a staggered basis as business resumes.”
Macy’s, which is based in New York, said it has taken massive steps to stem the financial fallout in recent weeks. It has canceled orders, implemented hiring and spending freezes and suspended payouts of its dividend.
The retailer was already on shaky ground before the coronavirus outbreak. In February, it announced it would close 125 stores — about a fifth of its total — and lay off about 2,000 workers after a disappointing holiday season.
(c) 2020, The Washington Post · Abha Bhattarai
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