- Huw Hughes |
Tapestry has announced a number of new measures to mitigate the impact of Covid-19 on the company which include cutting part-time jobs and slashing corporate salaries.
The group, which owns brands Coach, Kate Spade and Stuart Weitzman, said it would be reducing its North America workforce by around 2,100 part-time roles across its stores, effective 25 April. These employees will receive a one-time payment of 1,000 dollars.
There will also be a 50 percent reduction in cash compensation for its board of directors and for CEO Jide Zeitlin. Salary reductions of between 5 to 20 percent will affect all North America corporate employees above a certain salary threshold.
The company is also drawing down 700 million dollars from its 900 million dollar revolving credit facility.
The company said it is now reopening stores in China “as quickly as possible”, while adhering to governmental and public health guidelines, with all its stores on the Mainland now open.
“With the passage of time, we are facing increasing pressure on the financial performance of the business, requiring us to make difficult decisions to ensure that Tapestry and its brands continue to thrive well into the future,” said Zeitlin in a statement. “These decisions are balanced with numerous steps to moderate the impact of the current environment on our people.”
Photo credit: Coach, Facebook