In the wake of the economic upheaval of Covid-19, Bloomington-based Great Clips Inc. has laid off 63 employees in its headquarters office. Details of the decision surfaced in letter filed with the Minnesota Department of Employment and Economic Development (DEED) under the federal Worker Adjustment and Retraining Notification Act (WARN). According to the company’s filing, the job cuts were “expected to occur on March 27,” the same date as the letter.
Per the company’s letter, “Specifically, this action is the result of the devastating financial impact on our business of the unexpected Covid-19 outbreak, which has created significant and recent unforeseeable business circumstances.”
The fallout from COVID-19 is far and wide affecting restaurant operators, retailers, airlines, and many other business sectors. On Monday, for example, retailer Macy’s Inc. announced that it would furlough the majority of its 130,000 employees.
Great Clips provided a brief statement in response to an inquiry from Twin Cities Business: “As with many companies, we are already seeing firsthand the impact of Covid-19 across our business. The vast majority of our salons are closed due to government mandates and franchisee-led decisions based on what’s happening in their local communities with respect to the virus. We’ve had to make difficult decisions to streamline our operations and reduce our workforce at Great Clips, Inc. We believe these steps will help us ensure the ongoing health of our business and position our brand for a quicker recovery following this global pandemic.”
According to the company’s web site, there are more than 4,400 Great Clips salons across North America. The salons are 100 percent franchised – none are corporately owned.
The company’s letter holds out the possibility that some of the jobs could return once the economy bounces back: “This action is expected to be permanent in nature. However, if circumstances improve and the company decides to begin hiring, we hope to be able to rehire individuals impacted by this reduction in force.”