News: Macy’s, Gap, and Kohl’s offers leave without pay to thousand of employees

Talent Acquisition

Macy’s, Gap, and Kohl’s offers leave without pay to thousand of employees

Earlier, 3.28 million Americans filed for unemployment—a number which will rise given a string of employers furloughing employees.
Macy’s, Gap, and Kohl’s offers leave without pay to thousand of employees

Macy’s, Gap, and Kohl’s will furlough thousands of workers without pay, as retailers around the world face tumbling sales driven by Covid-19 social distancing efforts.

Retail workers make up a substantial portion of the U.S. labor force. Preliminary figures in February from the U.S. Bureau of Labor Statistics put seasonally adjusted retail employees at 15.7 million, or about 9.8% of all civilians employed.

Macy’s shared in media that the majority of its around 125,000 employees would go on furlough starting this week. The people affected will not receive pay, though anyone enrolled in health benefits will receive coverage covering 100 percent of the premium—at least through May. 

Macy’s has previously said it would reduce pay at all levels of management at the director level and above, from April 1 through the duration of the crisis, adding CEO Jeff Gennette would not receive compensation during the period.

Gap (GPS), which owns the Gap, Banana Republic, Old Navy, Athleta, Intermix, Hill City, and Janie and Jack brands, said it will furlough the majority of its store teams in the U.S. and Canada. The company ended its latest fiscal year on Feb. 1 with a workforce of about 129,000 people.

The Gap furlough decision impacts about 80,000 people, according to The Wall Street Journal. Gap will continue to offer applicable benefits to those furloughed until stores reopen. The company is also reducing its corporate headcount. Its leadership team and board of directors will also take a reduction in pay. On Gap’s corporate website, it offered resources to those affected, including a list of retailers still hiring, which includes Walmart, Walgreens Boots Alliance, and Amazon.com.

Kohl’s (KSS) extended the duration of its store closures until further notice and said it would furlough store and store distribution center associates, as well as some corporate associates. It will also continue to provide existing benefits. During 2019, the company employed an average of 122,000 associates, which varied by the time of year.

Read full story

Topics: Talent Acquisition

Did you find this story helpful?

Author

QUICK POLL

How do you envision AI transforming your work?

Your opinion matters: Tell us how we're doing this quarter!

01
10
Selected Score :