US-based department store Macy’s is to furlough most of its workforce this week, as the COVID-19 pandemic takes a heavy toll on its business.
All of Macy’s stores have been closed since March 18.
Macy’s said that while its digital business is open, it has lost the majority of its sales due to store closures.
“We’ve already taken measures to maintain financial flexibility, including suspending the dividend, drawing down our line of credit, freezing both hiring and spending, stopping capital spend, reducing receipts, cancelling some orders and extending payment terms, and we are evaluating all other financing options,” the retailer said in a statement.
However, Macy’s said that these actions were not enough and it was forced to move to what it calls the absolute minimum workforce.
There will be fewer furloughs in the company’s digital business, supporting distribution centers and call centers.