Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.
Over the past few days, hundreds of thousands of retail workers across the US have been furloughed from their jobs until further notice as their employers take drastic measures to cut costs during the coronavirus crisis.
Advertisement
The retail sector has been hit hard over the past few weeks and months, and for conflicting reasons. While grocery chains and food delivery companies are scrambling to meet surging demand, other retail businesses deemed "nonessential" by the government have been forced to shutter stores and are now finding that a large portion of their business has dried up.
Store closures across the country are taking their toll on the people who previously worked in these now-shuttered locations and who now find themselves without a paycheck.
Below are some of the major US retailers that have announced temporary and permanent layoffs in recent days:
Do you have a personal experience with the coronavirus you'd like to share? Or a tip on how your town or community is handling the pandemic? Please email covidtips@businessinsider.com and tell us your story.
Macy's CEO announced Monday that the majority of the company's workforce would be furloughed during the pandemic, explaining that having "cash sufficiency" during the crisis was the top priority at the moment.
Impacted employees will not be paid during this time but will remain employed by the company. They will continue to receive healthcare benefits through May.
JCPenney
JCPenney announced Tuesday that it would furlough many of its 85,000 employees.
The company said the furloughs would affect a majority of its hourly store employees starting April 2.
JCPenney will also furlough a "significant portion" of its corporate workforce starting April 5.
The furloughs will affect employees at its headquarters in Plano, Texas, as well as its offices in Salt Lake City and New York City.
Many of the company's employees in supply chain and logistics centers were previously furloughed on March 20.
Victoria's Secret and Bath & Body Works
Victoria's Secret is one of the few retailers to shut its brick-and-mortar locations and online store, though the latter was for only a week. Its part owner L Brands announced this week that it is furloughing the majority of its workforce at Victoria's Secret as well as at its sister brand Bath & Body Works.
These workers would be furloughed starting April 5 until further notice, the company said.
Kohl's
On Monday, Kohl's extended its store closures until further notice and at the same time furloughed all of its store and store distribution center associates along with some corporate office employees.
These workers will not be paid during this time but will continue to receive health benefits.
Gap Inc.
Gap Inc. confirmed on Monday that stores would remain closed beyond its initial deadline of April 1. Because of this, the company has chosen to furlough the majority of its store teams across the US and Canada. And as the retail giant owns Gap, Old Navy, Banana Republic, and Athleta, along with a selection of smaller brands, this decision will impact thousands of workers.
While it will be cutting pay during this time, these workers will continue to receive benefits until stores reopen.
Everlane
Trendy clothing brand Everlane laid off more than 200 workers this month and furloughed a further 68, according to a recent Vice report.
All of the retailer's stores are currently closed.
Nordstrom
Nordstrom said it would furlough "a portion of corporate employees" starting April 5 and lasting for six weeks.
A spokesperson for the company did not respond to Business Insider's request for comment on whether store workers were included in this.
Rent the Runway
Concerns about the safety of rental products and the fact that many consumers are on lockdown and aren't going out mean that the rental sector is being badly impacted by the pandemic, Neil Saunders, managing director of GlobalData Retail, said in a recent email to Business Insider.
Rent the Runway has taken action to temporarily close its stores and has since laid off all of its retail workers, according to a Verge report.
Ann Taylor, Lane Bryant, and Loft
Ascena Retail, the parent company of Ann Taylor, Lane Bryant, and Loft, recently furloughed all of its store workers and around half of its corporate staff. Workers that were enrolled in medical benefits will continue to receive them during this time, the company said.
Some of its corporate workers who were not furloughed saw cuts of between 10% to 45% in their base salaries. The company's interim executive chair Carrie Teffner and CEO Gary Mutoboth confirmed in a company press release they would take a 50% cut in their salaries during this time.
