ORLANDO, Fla. – As the number of coronavirus cases in the U.S. continues to rise, JCPenney has announced plans to extend its store closures and furlough most of its hourly associates, according to a news release.
Officials with the company announced Tuesday that the majority of its store hourly associates would be furloughed starting Thursday. Company officials also said it’s making temporary cuts to its corporate workforce and salaried employees that will take effect Sunday.
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“Beginning April 5, a significant portion of associates in the Company’s Home Office, Salt Lake City, and Soho design offices will be furloughed, along with its store salaried associates,” company officials said in a statement.
JCPenney had previously furloughed employees in supply chain and logistics departments in response to the COVID-19 pandemic. Company officials said those furloughs will continue.
The closures and furloughs come after President Donald Trump extended social distancing guidelines through April in an effort to slow the spread of the novel coronavirus.
“These are difficult days all across the country and the globe. At JCPenney, we are making tough, prudent decisions to protect both the safety of our associates and the future of our company,” said Jill Soltau, chief executive officer of JCPenney. “We remain optimistic about JCPenney’s ability to weather this pandemic. We also believe these short-term solutions will have a long-term benefit for our associates, customers, and key stakeholders as we look forward to the day that we reopen our doors.”
JCPenney officials said employees will continue to receive benefits amid the closures and some may be eligible for benefits under the recently passed federal stimulus package.
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“All furloughed associates who are currently enrolled in the JCPenney benefits program will continue to receive full health benefits and the company plans to cover 100 percent of employee-paid premiums for the duration of the furlough. Many impacted associates are also eligible to receive state unemployment benefits, which were recently increased with the passage of the federal stimulus bill,” the release said.
Company officials said they’re doing their best to answer any questions employees may have regarding their employment status during the health crisis.
“Our thoughts are with our valued associates and their families who are all being affected as we face this troubling time together. This is a true public health crisis, so we are maintaining health benefits and paying premiums for associates,” Soltau said. “We are in conversation with our associates and endeavoring to answer every one of their questions.”
Meanwhile, JCPenney is continuing to serve customers by fulfilling online orders and answering customer inquiries, the news release said.
Earlier this week, Macy’s, Kohl’s and Gap Inc. all said they will stop paying tens of thousands of employees who were thrown out of work when the chains temporarily closed their stores and sales collapsed due to the pandemic.
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