Goodwill announces COVID-19 related workforce reduction
LOUISVILLE – Goodwill Industries of Kentucky announced Wednesday (April 1) that it will furlough approximately 1,000 of its retail employees. The furloughs are a direct result of revenue losses related to the temporary closing of its 66 stores due to the coronavirus pandemic.
Goodwill will continue to provide furloughed employees the benefits they currently receive for as long as possible and expects to bring them back as stores reopen.
In additional cost-cutting efforts, Goodwill is eliminating approximately 20 percent of the payroll for its administrative and career services positions. All remaining staff will take a reduction in salary according to their level of pay – including the organization’s CEO, Amy Luttrell.
“All of our staff are valued members of the Goodwill team who are known to go above and beyond to help fulfill our mission, which makes this an especially difficult time for us,” said Luttrell. “However, without any certainty of when we can expect to generate revenue again, it is necessary that we find ways to reduce expenses.”
These moves underscore the impact the ongoing pandemic is having on businesses and nonprofit organizations across the country.
On March 20, Goodwill announced that it was temporarily closing its retail and career services centers for two weeks but would still pay all of its 1,700 employees during that time period. However, as the health crisis continues to grow, Goodwill will remain closed for an undetermined period resulting in a need to reduce operating expenses.
“By making this very difficult decision today, our intent is to stabilize the organization,” said Luttrell. “Many companies across the country are going out of business and our goal is to come out of this crisis ready to continue as a vital service to the communities and individuals we support.”