Macy’s Inc., a large U.S. retailer, said it has decided to furlough most of its 125,000 employees starting in early April as all its stores are closed.
Macy’s owns Macy’s, Bloomingdale’s, Bluemercury and other brand department stores. In order to prevent the spread of the epidemic and comply with state and city laws requiring the closure of non-essential businesses, the company has closed all 775 physical stores in the United States.
Macy’s said that physical stores are the company’s main source of revenue, so closing stores will hit it hard. The company recently announced a series of measures to preserve cash flow, including suspending quarterly dividends, drawing down credit lines, halting recruitment and reducing expenditures. The company stated that the above measures are helpful to the company’s business, but are not enough to stop losses. The company will only retain the manpower that can maintain the basic operation of the brand, so it will need to furlough the vast majority of people.
