Industry customer Nordstrom said Wednesday afternoon it is furloughing a portion of its corporate staff for six weeks as result of the extreme business disruption caused by the coronavirus.
“This is the most difficult decision we have made in our company’s long history,” CEO Erik Nordstrom said in a statement. “Through our 119 years, our company has faced many challenges, but these are unprecedented times.”
The company is also extending its store closures in the U.S. and Canada through April 5. Store employees will be paid through that time, but then the company indicated it will stop paying store employees. It will continue to pay their benefits through April, however.
Nordstrom will continue to pay corporate employee benefits during the six-week furlough.
The leadership team will forgo a part of their salary, and both Pete and Erik Nordstrom will decline their salary from April through September. All members of the Company’s Board of Directors will forgo cash compensation for a six-month period.
Nordstrom operates 380 stores across several banners.
Companies in many industries are facing an unprecedented challenge – nearly all revenue has completely stopped yet businesses still have major expenses including inventory, employees and other overhead.
In our industry, company CEOs told us in detail about the financial crisis they are facing. Read that story here.
