After Closing Stores, Signet Furloughs Employees

closure of all its retail stores in the U.S., the U.K., and Canada amid the coronavirus pandemic.

The furlough is effective April 6 through the end of May, though the end date is subject to change.

Staffing will be kept to a minimum at its warehouses worldwide, which will focus on e-commerce orders.

U.S. employees will receive health and other benefits during the furlough.

Salaried employees will see a salary reduction of 15 to 25 percent while CEO Efraim Grinberg will forego his salary. The board of directors has waived the cash portion of its compensation.

The company’s 401(k) match and its match on executive deferred compensation plans have been frozen.

“As we look ahead, our strong balance sheet and the decisive actions announced today should enable the company to emerge from the current crisis with the means to quickly ramp up operations to support our brands and business,” Grinberg said in a press release.

J.C. Penney Co. Inc. said Tuesday it is temporarily furloughing the majority of hourly store associates starting today.

Furloughs will extend to a significant portion of associates in the company’s home office, as well as the Salt Lake City and New York design offices and salaried store associates, on April 5.

The retailer already had furloughed many workers in its supply chain and logistics centers.

Macy’s Inc. also has furloughed its employees following store closures.

“The COVID-19 outbreak continues to take a heavy toll on Macy’s Inc. business,” the retailer said Monday.

Its stores have been closed since March 18 and will remain closed “until we have [a] clear line of sight on when it is safe to reopen.”

The majority of employees of Macy’s, Bloomingdales and Blumercury will be furloughed as the retailer moves to the “absolute minimum” workforce needed to maintain basic operations.

The retailer declined to disclose the number of employees the furloughs will affect.

There will be fewer temporary layoffs at its digital business, supporting distribution centers, and its call centers as business continues online.

Those affected and enrolled in health benefits will continue to receive them at least through May, said Macy’s, with the company covering 100 percent of the premium.

The retailer said it expects to bring back employees on a staggered basis as business resumes.

CEO Jeff Gennette will not receive compensation at this time, and pay has been reduced for all managers at the director level and above, effective April 1 and lasting until the coronavirus crisis has passed.

Macy’s recently introduced turnaround plan, dubbed Polaris, is likely on hold as the retailer said it is deferring capital spend, as well as suspending its quarterly dividend and cancelling some of its orders.

More than 6.6 million new claims for unemployment insurance were filed last week, the Labor Department reported Thursday morning, more than double the 3.1 million economists were expecting.

In the past two weeks, 10 million Americans have filed for unemployment insurance.

Editor's Note: This story has been updated to include additional information from Movado.