Stella McCartney follows Victoria Beckham's example, furloughs hundreds of staff despite $400 million turnover
Stella McCartney has furloughed hundreds of her staff members amid the COVID-19 pandemic. The fashion designer has also reportedly asked her employees to take a pay cut if they continue to work.
With this move, McCartney has joined her fellow designer Victoria Beckham because, like the ‘Open Your Eyes’ singer, she will also use taxpayers' money offered as part of the government's job retention scheme to pay wages. According to reports, under Chancellor Rishi Sunak's rescue package, organizations can lay claim to up to 80 percent of salaries to a maximum of £2,500 ($2,708).
According to a source, as many as half the 1,400 employees at 51 stores worldwide have been put on furlough with the brand’s stores in cities, like New York, Los Angeles, and Las Vegas forced to shut due to the coronavirus lockdown, reports The Sun.
The decision taken by the 48-year-old has left her employees hurt as one said: “What she has done is morally wrong and socially unacceptable. We had all expected much more from Stella, but she has shown no loyalty. She prides herself on social credentials, but we have just been dumped."
McCartney has also reportedly told her employees that they won’t be paid any additional amount with her own money. The move has been heavily criticized, as being the sole owner of her brand that sees an annual turnover of more than £500 million ($615 million), McCartney's actions are not justified.
McCartney's brand is famous among A-list celebrities such as Meghan Markle, who wore an evening gown designed by her for the reception of the royal wedding. The Duchess of Sussex also wore one of her £1,500 ($1,846) coats at Remembrance Sunday.
This comes soon after around 25 staff, including a senior executive and chief marketing officer, of Beckham were forced to take a furlough. “Like many, Victoria has reluctantly had to furlough staff members. It wasn't a decision she took lightly but, for the long-term stability and profitability of the company, it had to be done,” a source revealed.
Continuing further, the insider said: “She has been personally keeping all her team involved with emails the whole way through, and has put all of the staff involved in enhanced furlough packages. She has even forgone her own salary in order to lead from the front. Although she is still passionate about fashion, Victoria will really be focusing her efforts on the beauty side now. Overheads for the online business are low, and it’s really beginning to flourish.”
Beckham’s move has also been severely criticized with Piers Morgan slamming her and asking her to reconsider her decision of using the taxpayers' money since her family is worth £335million ($444 million).
“Sorry, but this makes me puke. If you care this much about the NHS, @victoriabeckham - then why are you taking taxpayer money the NHS desperately needs - and you DON'T need - to furlough your staff & prop up your failing business,” the 'Good Morning Britain' host said while pointing towards a video showing Beckham introducing Sir Elton John for the 'One World: Together At Home' concert.