Coach and Kate Spade Owner Tapestry Cuts 2,000 Jobs

Shares of Tapestry, the owner of luxury brands such as Coach and Kate Spade, were falling on Monday after the company said it would slash jobs and make other cost-saving moves in response to the coronavirus pandemic.

Tapestry has cut 2,100 part-time workers across its brands and staffers will receive severance payments of $1,000 each.

The company said that if it can’t reopen its stores by May 30, it will have to furlough most store associates and North American assistant managers. Until then, these workers will continue to get pay and benefits.

“With the passage of time, we are facing increasing pressure on the financial performance of the business, requiring us to make difficult decisions to ensure that Tapestry and its brands continue to thrive well into the future,” Chief Executive Jide Zeitlin stated.

“These decisions are balanced with numerous steps to moderate the impact of the current environment on our people.”

The company also revealed this week that it is halving cash compensation for the directors, halving Zeitlin’s salary, and paring salaries 5% to 20% for all North America corporate employees above a certain pay threshold.

Tapestry is also drawing down $700 million from its $900 million revolving credit facility to add cash, suspending its quarterly dividend and suspending its share repurchases.

Disclaimer: We have no position in Tapestry Inc. (NYSE: TPR) and have not been compensated for this article.