Minneapolis-based Sleep Number is furloughing 2,000 workers – roughly 40 percent of its workforce – as most of its stores and operations have closed due to COVID-19, the company announced Wednesday.
Sleep Number will also cut hours for another 30 percent of its workers. Benefits including 401(k) matching will be suspended.
The company’s President and CEO Shelly Ibach will not receive any salary for the balance of the year, instead deferring 50 percent of it and receiving the rest in restricted stock. Board and leadership will also take a pay cut in exchange for restricted stock.
The company, which has closed stores and cut back on its home delivery since the onset of the coronavirus outbreak, is cutting further costs by discontinuing share buybacks and cutting back on sales and marketing costs.
But it is making changes to provide more remote services, private appointments, and remote work for employees and contactless delivery.
The company is also aiding in the production of N95 masks, which are highly in-demand in hospitals and healthcare facilities.
“The COVID-19 pandemic is a human and economic crisis unlike anything our country and world have ever experienced,” Ibach said in a statement.
“We have witnessed how lives and businesses have radically changed in a few weeks’ time. We are focusing our collective energy and resources on keeping our team members safe, serving our customers and ensuring business continuity.”