Coronavirus News: Dick’s Sporting Goods Makes Heartbreaking Decision To Furlough Workers, Reduce Pay

Dick’s Sporting Goods (DKS) announced that it was furloughing a “significant number” of employees because of the impact of the coronavirus.

The furloughs will affect Dick’s store, distribution center, and corporate headquarter workers, effective April 12, according to its Securities and Exchange Commission filing. The company said in its filing that the furloughs were a result of the uncertainty in how long its stores would remain closed.

Dick’s said it will continue to provide benefits to its workers throughout the furlough. The company employs about 40,000 workers across about 800 stores, which have been closed because of the COVID-19 crisis. The company continues to offer e-commerce sales and curbside pickup in areas where allowed.

“As the impact of the virus continues to grow, it is increasingly evident that our stores are not going to reopen to public access any time soon,” Dick’s said in a statement. “However, it’s with a heavy heart … that we now must furlough a significant number of our teammates, beginning April 12.

“Our teammates are the lifeblood of our company — an amazing group of dedicated and passionate people — which makes this an agonizing decision, and one we had hoped we would never have to make.”

Beyond the furloughs, Dick’s will reduce the salaries of its executives, senior leaders, and certain other workers while suspending its cash retainer to its board of directors.

As further cost-cutting measures, Dick’s will reduce its planned capital expenditure, suspend share repurchases, and evaluate its dividend program.

Shares of Dick's Sporting Goods stock were up 7.59% as of 12:15 a.m. EDT on Wednesday.