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Macy’s to furlough majority of its 130,000 workers

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The exterior of a Macy’s department store is seen at the Landmark Mall on January 5, 2017, in Arlington, Virginia. – Investors hammered retailers early January 5, 2017 as US stocks opened near flat following reports of disappointing holiday sales from department stores Macy’s and Kohl’s. Macy’s slumped 12.8 percent and Kohl’s 17.2 after both reported lower sales in the critical November-December period. Macy’s also said it plans to cut as many as 10,100 jobs in a response to the decline of shopping in stores due to the rise of e-commerce. (Photo by Andrew CABALLERO-REYNOLDS / AFP) (Photo credit should read ANDREW CABALLERO-REYNOLDS/AFP via Getty Images)

NEW YORK (AP) – Macy’s is furloughing a majority of its 130,000 workers beginning this week as its sales have collapsed because of the pandemic. The company says that it will be moving to an ‘’absolute minimum workforce” needed to maintain basic operations. It says there will be fewer furloughs in its online operations.

The company says at least through May, furloughed colleagues who are enrolled in health benefits will continue to receive coverage with the company covering 100% of the premium.

NEW YORK (AP) — Macy’s will furlough a majority of its 130,000 workers with its stores dark.

The company on Monday said it is transitioning to an ‘’absolute minimum workforce” needed to maintain basic operations.

“We expect to bring colleagues back on a staggered basis as business resumes,” the company said.

Macy’s closed all of its stores this month, more than 500, as the coronavirus spread.

To survive, it has suspended its dividend, drawn down its line of credit, frozen hiring and spending, and canceled orders. Macy’s is now evaluating all financing options.

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