Sephora keeping majority of U.S. store employees on payroll through late May
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 U.S. store employees — which represent the vast majority of its U.S. workforce — on the payroll through late May or until its store reopen, whichever happens sooner. The employees will be paid 100% 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.
With its e-commerce business currently operational, Sephora has increased pay by $2 per hour worked for all distribution center employees, with the increase continuing until stores reopen. The chain noted it has implemented every measure recommended by the CDC, as well as additional safeguards, to promote a safe and productive environment for DC employees. Customers may experience a delay in receiving their orders as social distancing requirements mean that fewer people are processing orders at one time than usual.