TJX Joins Growing List of Retailers Furloughing Employees
TJX Companies Inc. (NYSE: TJX) is joining the growing list of retailers who are furloughing employees. Macy’s, Gap, and Urban Outfitters are already some prominent names on the list. What separates TJX from the rest is the fact that it has significantly more employees.
According to TJX, the company will furlough a majority of its employees. As of February 1, 2020 TJX tallied about 286,000 employees.
Obviously, most of the furloughed employees being will come from the stores and distribution centers. However, the company will continue to offer existing employee benefits for eligible employees at no cost.
Executives will take a pay cut to help save on the bottom line as well. The board’s executive compensation committee approved a temporary 30% base salary reduction for CEO Ernie Herrman and Executive Chair Carol Meyrowitz. Other executive officers will be seeing a 20% reduction.
This is more or less in line with what other retailers in the space are doing. Ultimately, this furlough is a waiting move for these companies to see what will happen next with the coronavirus outbreak.
TJX stock traded up about 7% on Wednesday, at $49.82 in a 52-week range of $32.72 to $64.95. The consensus price target is $61.38.