SWFI Daily Layoffs Briefing, June 5, 2020
Posted on 06/05/2020
Here are more layoffs tied to the economic impact of the Wuhan coronavirus (COVID-19) pandemic.
According to data from the U.S. Department of Labor, employment rose by 2.5 million in May 2020 and the jobless rate declined to 13.3%.
Perella Weinberg Partners
Boutique investment bank Perella Weinberg Partners plans to terminate around 7% of its employee base. This is part of a strategic review.
Brooks Brothers
Men’s retailer Brooks Brothers is having conversations with lenders about raising money for a potential bankruptcy. Brooks Brothers is considering a Chapter 11 bankruptcy filing. Investment bank P.J. Solomon was retained by Brooks Brothers to explore options.
J.C. Penney
Texas-based J.C. Penney, a bankrupt company, listed 154 stores it plans to close this summer. J.C. Penney expects the store closing sales to last anywhere from 10 to 16 weeks.
Chevron Corporation
Chevron Corporation seeks to terminate 10% to 15%, or about 4,500 to 6,750 people, of its worldwide workforce. Chevron’s job cuts will be across the board but heavy on the corporate functions and the support functions.
Brex
Credit card company Brex laid off 62 employees, or about 17% of staff, as the company restructures. In May 2020, Brex raised US$ 150 million.
Stitch Fix
Online retailer Stitch Fix is laying off 1,400 employees in California. The company has plans to hire people in lower-cost U.S. cities. Stitch Fix had to close two of its distribution centers, one in California and another in Pennsylvania.
Stitch Fix’s founder and CEO Katrina Lake said offered the following statement:
“We have taken the very difficult decision to reduce the number of Stylists in our styling team in California, as we invest in our other styling hubs across the US, and the innovations that will help evolve our experience in the future. All of our California-based stylists will be offered the opportunity to relocate to the new roles in other states.
Any decision that impacts our hardworking and talented people is incredibly tough, but we believe this is the right thing to do for our business. We are committed to supporting our people through this by providing as much financial stability as possible, including severance payments that increase with tenure, bonuses for Stylists staying with us during the transition period, extended healthcare and recruitment resources.”
