Macy’s Furloughs Most of Its Workers
Another shot to the gut, with news that Macy's is furloughing the majority of its employees, as its stores are closed. Nation-wide the number is estimated at around 130,000. Macy's is at the Crossroads Mall in Portage. The store started out as Hudson's, and after a series of mergers was re-branded Macy's over a decade ago.
WOOD-TV on it's website says Macy's has made the decision to have an "absolute minimum workforce". While store employees will be hit the hardest, workers in the online sales division will be less affected.
One bright spot might be that health insurance benefits will not be affected by these furloughs.
The company says "we expect to bring colleagues back on a staggered basis as business resumes."
According to the story, Macy's "to survive, it has suspended its dividend, drawn down its line of credit, frozen hiring and spending, and cancelled orders. Macy’s is now evaluating all financing options."
In addition to the effect of the coronavirus, the company has already been struggling with consumers moving to the online economy, and away from brick and mortar stores. This move will have to watched closely as many other retailers are facing similar struggles, in addition to landlords and mall property owners.