IE Business Daily Business news for the Inland Empire.
Macy’s Inc., the venerable department store chain that closed all of its stores March 18 in response to the Coronavirus outbreak, is furloughing its workers.
The move, announced Monday, applies to the company’s Bloomingdales and Bluemercury brands, according to a statement on the the company’s website.
It comes after other measures – including drawing down its line of credit, freezing hiring and spending, cancelling some orders and extending payment terms – have failed to improve the department store chain’s bottom line.
“While these actions have helped, it is not enough,” the statement reads, while noting that Macy’s digital business has remained open. “We will be moving to the absolute minimum workforce needed to maintain basic operations. This means the majority of our [workers] 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.”
All furloughed employees with health benefits will continue to receive their full coverage at least through May. Workers will return “on a staggered basis” when business resumes.
Macy’s has 98 stores in California, including eight in the Inland Empire, according to the company’s website.
