Ulta Beauty made the decision on Wednesday to furlough store and salon associates as the coronavirus outbreak forces stores to stay closed for the foreseeable future. Associates supporting the Ulta Beauty distribution centers will continue operations to support the company’s essential e-commerce business.
“As we navigate this very fluid situation, our teams are evaluating all new information, including recently passed legislation, to ensure we can make the best decisions for our associates, our guests and our business,” said Mary Dillon, Chief Executive Officer. “After thoughtful consideration, we have made the difficult decision to temporarily furlough many of our store and salon associates. During these uncertain times, we will do all we can to make sure these associates are supported.”
With every intention of bringing its workforce back when it is safe to do so, the temporary furlough will be effective April 19, 2020. In the interim, furloughed associates will be eligible to apply for unemployment benefits, which were recently increased with the passing of the federal CARES Act. All furloughed associates participating in company benefit plans will remain enrolled in their respective coverages. Ulta Beauty has curated relevant resources and information to help guide associates during this interim furlough and offers continued access to its Human Resources Support Center.
As the company manages the Covid-19 pandemic, Dillon has elected to indefinitely forgo her base salary and has made a personal donation of $500,000 to the Ulta Beauty Associate Relief Program, which is part of the Ulta Beauty Charitable Foundation. The program, established in 2017, provides monetary grants to associates facing personal hardship. The Ulta Beauty executive team and Board of Directors will each make personal donations as well.
“As we move forward, we intend to stay true to our company values and work towards the day when we can reopen with the most strength and safety as possible,” continued Dillon. “This means we will continue to make important decisions in an effort to support our business and importantly, our teams. In these unprecedented times, we want to do our part to help the larger, global community and take care of our Ulta Beauty family. We are in this together.”
Ulta Beauty is also making a donation of 450,000 medical-grade gloves from its salons to hospitals in need across the country in collaboration with FEMA to help healthcare workers on the front line.
Photo: via Ulta