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

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Macy’s, which also owns Bloomingdale’s and Bluemercury, said on Monday that it has lost “the majority” of its sales because of store closures, which started on March 18 and will persist until the retailer has a “clear line of sight on when it is safe to reopen.”

The company said that as a result, it will furlough the majority of its employees this week. There will be fewer furloughs in the digital business. Macy’s had 130,000 part-time and full-time employees as of Feb. 2.

The company said in a statement on Monday that it had already stopped paying a dividend and capital spending. It has also drawn down its line of credit, and canceled some orders.

“There will be fewer furloughs in our digital business, supporting distribution centers and call centers so we can continue to serve our customers online,” the company said. “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. We expect to bring colleagues back on a staggered basis as business resumes.”

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