Lululemon cuts senior leadership salaries by 20%
Activewear and lifestyle brand Lululemon has announced a cut to senior leadership team salaries of 20% for the next three months amid the COVID-19 outbreak.
To safeguard the business all members of the Board of Directors will also forgo their cash retainer. The total cost of these savings will be used to establish the company's new We Stand Together Fund, to aid employees who are currently facing hardships in their lives.
The activewear company has extended its temporary store closures until it is safe to reopen, with employees kept on payroll until 1 June, whether stores reopen or remain closed.
Lululemon has recently taken a number of actions and initiatives to support staff members, including closing stores in North America, Europe, Australia, New Zealand, and Malaysia, establishing a Global Relief Pay plan for employees, and creating a $2 million Ambassador Relief Fund.
The company also confirmed it will continue to operate online, having implemented enhanced health and safety measures to ensure the protection of its staff in distribution centres.
In a statement the company said: "The impact of COVID-19 is difficult to process as we navigate the uncertainty of the situation on a daily basis. People are the heart of lululemon, and through this period, we are committed to doing right by our teams, guests, and global communities."