Lands' End Furloughs Nearly 100 Percent Of Retail Workers

DODGEVILLE, WI — Wisconsin-based Lands' End is making sizable cuts to its workforce due to the coronavirus public health emergency, officials said in an announcement this week. Company officials say the retail chain will furlough nearly all of its retail employees and roughly 70 percent of its corporate employees in cost-cutting moves aimed at keeping the company in good financial health through the downturn.

As the new coronavirus spreads through Wisconsin, many people have lost their jobs as non-essential businesses have been ordered shut to prevent the illness from spreading. Within a span of a week, life in Wisconsin was transformed after schools were ordered closed on March 18. Dine-in restaurants were ordered closed on March 17. The Wisconsin Department of Health Services ordered a "safer at home" order on March 24, restricting people's movements for all but essential tasks.

Business are bearing the brunt of such limitations.

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"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," Jerome Griffith, Chief Executive Officer and President of Lands’ End, said in a statement.

"A furlough of approximately 70 percent of Lands’ End’s corporate employees and nearly 100 percent of its retail employees began on March 28," Griffith said.

"While some of these personnel executing critical tasks will return to work on April 14, 2020, for many, the furlough will remain in effect through at least May 1, 2020, in line with the federal government’s and with the State of Wisconsin’s current timeline for the continuation of social distancing."

Company officials said Lands’ End will fund health insurance premiums for employees while they are furloughed, through May 1.

Company officials said their Wisconsin-based distribution centers will remain operational, and employees working there will get a temporary increase in pay for all hours worked. Lands' End officials say they're practicing social distancing at work, maintaining six feet of space between employees.

Other cost reduction actions include:

• Temporarily reducing base salaries.
• CEO Jerome 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 expenses to about $20 million in 2020 from $40 million in 2019.
• Significantly reducing other discretionary operating expenses.

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