Nordstrom Extends Closure, Furloughs Part Of Workforce

Nordstrom will extend its temporary store closure for at least one week, through April 5. The closure impacts all U.S. and Canada stores, including Nordstrom, Nordstrom Rack, Trunk Club, Jeffrey, Nordstrom Local and Last Chance.

“We are taking action across our business to respond to the challenges we are facing today and to best position Nordstrom for our employees, customers and shareholders. We have a responsibility to protect the health of our people, while also preserving our long-term ability to offer jobs and benefits to our employees. The decisions we make are with that in mind,” said Erik Nordstrom, CEO, Nordstrom.

Since March 17, Nordstrom has provided ongoing pay and benefits to all store employees impacted by the temporary closures. The company plans to offer store employees an additional week of pay through April 5, as well as benefits through April. The company will require a smaller workforce to execute on the critical activities of the business during this time. As a result, it will be furloughing a portion of corporate employees starting April 5 for six weeks. Impacted corporate employees will continue to receive enrolled benefits.

The Nordstrom executive leadership group will forgo a part of their salary, and both Pete and Erik Nordstrom will decline their salary from April through September. Similarly, all members of the company’s board of directors will forgo cash compensation for a six-month period.