Macy's. Kohl's. The Cheesecake Factory. These are just a few of the retail and restaurant companies, in a string of mall denizens, that have announced they will furlough workers as stores closed because of the coronavirus in recent weeks.
But now the mall owners are starting to furlough workers as well.
This morning, Simon Property Group (NYSE:SPG), the largest mall owner in the U.S., furloughed 30% of its workers and laid off some employees permanently. The company hasn't made an official announcement of the move, but CNBC reported the news earlier today. The move was probably inevitable in any case, as multiple mall lessees have in recent weeks voiced pleas to their landlords, saying that with their stores closed and revenues down, they won't be able to make their rent this month.
Citing a person familiar with the Simon's decision, the news outlet noted that both full- and part-time workers at its Indianapolis headquarters will be sent home, as will certain office employees at Simon's malls and outlet centers across the country. With 4,500 workers on its payroll, the temporary furloughs could affect as many as 1,350 office workers.
The pain isn't confined just to the back office, either. CEO David Simon will be forgoing 100% of his salary "for the duration of the pandemic," while upper-level managers who don't get sent home can expect to see their salaries curtailed by up to 30%.
Simon Property Group stock is up 0.25% in late morning trading.