DODGEVILLE, Wis. (WMTV)-- Lands’ End announced it furloughed a majority of its employees to minimize health risks related to COVID-19.
The Dodgeville-based company announced the furloughs on Monday.
According to a press release, a furlough of 70-percent of its corporate employees and nearly 100-percent of its retail employees began March 28.
“At Lands’ End, the safety and health of all our employees is our first priority and we are taking steps to minimize risk through work-at-home policies, as well as practicing social distancing and enhanced sanitation in our facilities,” stated Jerome Griffith, Chief Executive Officer and President of Lands’ End. “Given the uncertainty related to the severity and duration of COVID-19, we have also taken proactive steps to reduce costs, carefully manage inventory, and preserve liquidity.”
Some of the personnel performing critical tasks will return on April 14. A majority of employees will not be able to return until at least May 1. The company plans to fund health insurance premiums for employees.
Their website will remain open and Wisconsin-based distribution centers will remain operational. Those employees will have a temporary increase in pay for hours worked.
Lands’ End states it has other cost reduction actions including:
- Temporarily reducing base salaries. As previously announced, Griffith’s base salary has been reduced by 50-percent, the base salary of his executive team has been reduced by 20-percent and scaled reductions are being taken throughout the company.
- Eliminating fiscal 2020 merit increases.
- Temporarily suspending the company’s 401 (k) match.
- Temporarily reducing Board of Directors compensation.
- Reducing capital expenditures to approximately $20 million in 2020 from $40 million in 2019.
- Significantly reducing other discretionary operating expenses.
Lands’ End stated it is committed to helping its community members. They donated new Lands’ End scrubs to Upland Hills Health in Dodgeville and provided staff at the Reedsburg Area Medical Center with jackets to wear at their outdoor triage area.
The company is also providing distribution center space for staging and distributing Personal Protection Equipment by the Department of Military Affairs.