Like many other US retailers, now PVH Corp. too has announced a cut in salary. And that’s not all! It is initiating several such steps to cut costs as business is heavily under pressure owing to fast spreading COVID-19.
The retailer continues to review and eliminate or reduce all discretionary operating expenses, including a reduced marketing spend and a decrease in capital expenditures to approximately US $ 190 million from US $ 345 million in 2019.
The company, which owns brands like Calvin Klein, Tommy Hilfiger, Van Heusen and IZOD, has put all hiring on hold and will not make any merit increases to salaries in 2020.
Additionally, payout levels for 2020 performance bonuses will be reduced by 50 per cent.
Manny Chirico, Chairman and CEO, has decided to forgo his salary while around 250 senior leaders and executives globally will experience salary reductions of up to 50 per cent.
Regarding North America, which has the highest concentration of its workforce, the company announced that it will result in approximately 75 per cent of store, office and warehouse associates being furloughed or having their working hours decreased.
Notably, all full-time associates will have a temporary salary reduction of 5 to 20 per cent depending on salary scale.
It is also executing temporary salary reductions for all office associates across Asia. Overall, it has over 40,000 associates operating in over 40 countries.
“We are doing everything in our power to best position PVH for long-term stability, while considering the impacts on all of our key stakeholders. We are confident that our actions will lead us to a stronger future,” said Manny Chirico, Chairman and CEO of the retail giant.
