Sephora has joined other major retailers in extending its store closures, but it is not following suit in another way.
Instead of furloughing the majority of its workforce, the beauty giant, which is owned by Paris-based luxury goods conglomerate LVMH, decided to let go of a portion of its part-time and seasonal store employee base, specifically those who have worked for the company for a short tenure and have limited hours. The employees have all been offered severance and provided with resources to support their transition, the company said.
Sephora plans to keep its 9,000-plus remaining US store employees — which represent the vast majority of its US workforce — on the payroll through late May or until its store reopen, whichever happens sooner. The employees will be paid 100 per cent based on average hours worked and continue to receive existing health benefits.
Sephora said its corporate offices have implemented a profit protection plan to conserve resources and focus on the essentials that are needed to drive our business in today’s environment. As part of the plan, all U.S. store and corporate employees will be required to take a six-day mandated PTO.
