Ulta Beauty to furlough staff, ceo takes pay cut

US-based beauty retailer Ulta Beauty will temporarily furlough many of its salon and store associates, effective April 19, due to the impact of COVID-19. Ulta Beauty ceo Mary Dillon has also decided to indefinitely forego her base salary.

Furloughed employees will be able to apply for unemployment benefits, which were recently increased with the passing of the US federal The Coronavirus Aid, Relief, and Economic Security (CARES) Act. Ulta says it has offered relevant resources and information to help guide employees during the furlough and offers continued access to its Human Resources Support Center.

Employees working in Ulta distribution centers will continue operations to support the company’s e-commerce business. As reported, Ulta provided a $2-per-hour wage premium for their continued work. Certain corporate associates are being reallocated to support pressing business needs like guest services and human resources, among others.

Ulta Beauty also announced that it will donate 450,000 medical grade gloves from its salons to hospitals across the country in collaboration with the US Federal Emergency Management Agency (FEMA).

Dillon also made a personal donation of $500k to the Ulta Beauty Associate Relief Program, which is part of the Ulta Beauty Charitable Foundation. The program provides monetary grant assistance to Ulta employees facing personal hardship, and has recently been expanded to include those in need of support due to a COVID-19-related personal hardship. The Ulta Beauty executive team and Board of Directors will each make personal donations as well.

As reported, Ulta closed all its stores on March 20 and originally said they would remain closed until March 31. The company has not confirmed a reopening date in its update, but says it is following authorities’ guidance on the situation.

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