The parent company of DSW Shoe Warehouse said in a release that the unpaid leave would begin March 29 as it tries to blunt the impact of coronavirus on its sales.
- Temporary Leave of Absence. We have already informed most associates across Designer Brands (DSW, Camuto, Canada and Shared Services) who do not directly support our dot-com business that they will be put on a temporary unpaid leave of absence (“temporary layoff” in Canada), effective Sunday, March 29, 2020. Impacted associates will retain their benefits coverage and years of service.
- Salary Reduction. All associates remaining in the business at this time will take an indefinite reduction in salary.
- Across the Board Changes. We also instituted a hiring freeze and put a hold on 2020 merit increases, while still paying out associate bonuses for FY2019.
Employees not placed on leave will have their pay cut, the company said, including a 20% reduction in the base salaries for all executives and a 20% reduction in cash retainers for all non-employee directors serving on its board.
The company will continue to operate its e-commerce business, distribution centers, and IT centers
As of its March 2019 annual report, the company had 16,100 employees.