Photo courtesy of Sleep Number.
Nearly 40% of employees at Minneapolis-based company Sleep Number will be furloughed, according to an internal email obtained by Minnesota Reformer. Another 30% of employees are working reduced hours.
The furloughs are a result of the “financial and operational impact” of the COVID-19 pandemic, the email says. It doesn’t specify how long furloughs will last, when they will be implemented or which employees will be affected.
The mattress company’s Minnesota stores stayed open under Gov. Tim Walz’s stay-at-home order — which deemed furniture stores non-essential — because Sleep Number is a “sleep store with solutions for improved health and well-being,” not a furniture store, a company spokesperson said.
President and CEO Shelly Ibach won’t take “cash compensation” for the rest of the year in exchange for stock, the email says, and other senior and operating leaders will reduce their pay. Ibach’s base salary in 2019 was roughly $988,000, and she made more than $5.4 million in stock awards and other compensation, according to federal filings.
Sleep Number has also paused hiring, rescinded more than 100 job offers and temporarily suspended its 401K match, the email says.
A Sleep Number spokesperson confirmed the authenticity of the email.
This story is developing. Check back for updates.
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