Macy's Will Furlough Most Of Its 125,000 Employees

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Macy's Will Furlough Most Of Its 125,000 Employees
The furlough will take effect this week, but employees can continue to use their health benefits at least through May.
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Macy's will furlough the majority of its 125,000 workers as the coronavirus pandemic continues.

On Monday, the department store chain announced the furlough will go into effect this week. The company also owns Bloomingdale's and Bluemercury, and all of its 775 U.S. stores have been closed since mid-March.

Originally, the company said it was closing stores until March 31, but now it says they'll "remain closed until we have clear line of sight on when it is safe to reopen."

Macy's was already struggling, and it said the coronavirus pandemic has taken a "heavy toll" on its business. It's "moving to the absolute minimum workforce needed to maintain basic operations". 

There will be fewer furloughs in the retailer's digital business, distribution centers and call centers, so online sales can continue. 

The company said furloughed employees can keep using their health benefits at least through May, and the company will cover any premiums. It will bring workers back "on a staggered basis" once it's ready to reopen stores.

Contains footage from The Associated Press. Contains footage from CNN.