Mattress Firm furloughs workers, cuts salaries and suspends some benefits in response to coronavirus

Mattress Firm has cut salaries, benefits and temporarily laid off workers as the coronavirus hammers sales. Mattress Firm has cut salaries, benefits and temporarily laid off workers as the coronavirus hammers sales. Photo: Bill Montgomery / Houston Chronicle Photo: Bill Montgomery / Houston Chronicle Image 1 of / 1 Caption Close Mattress Firm furloughs workers, cuts salaries and suspends some benefits in response to coronavirus 1 / 1 Back to Gallery

Mattress Firm, the nation’s largest mattress retailer, has furloughed some workers, cut salaries and suspended some benefits in response to the economic fallout from the novel coronavirus pandemic.

The Houston-based company on Thursday said it furloughed an undisclosed number of employees at its stores, distribution centers and corporate office; suspended some benefits, including disaster pay and paid time off for vacations and personal days; and reduced salaries and store hours at some locations.

Furloughed employees will continue to receive health care benefits.

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“As the situation with COVID-19 rapidly changes, we must adapt and operate differently both in how we live our lives and how we manage our business,” Mattress Firm Chief Executive John Eck said in a statement. “Unfortunately, due to the severity of the situation facing the world, our country and our company, we have had to make extremely tough decisions, similar to other companies, to ensure we can navigate this downturn and still have a company with jobs available for our people to return to when this crisis ends.”

Retailers, already challenged by the rise of online and big-box competitors, face a double whammy from the coronavirus and the oil crash. The virus, which causes a respiratory disease called COVID-19, has disrupted the global economy, shuttering schools, malls and factories. Low oil prices are compounding the economic slowdown in energy-dependent Houston as oil and gas companies furlough and lay off thousands of workers.

The company emerged from bankruptcy in November 2018 having slashed its store count by 700 locations.