Herman Miller, Inc, the global designer and furniture manufacturer, has announced a set of actions throughout its global operations in response to the uncertain economic outlook resulting from the COVID-19 pandemic.
“Since the onset of the COVID-19 pandemic, we’ve been carefully considering the right things to do for our people and our company to ensure we have both a healthy employee base and business when we emerge from these uncertain times,” said Andi Owen, President and CEO of Herman Miller. “Just as we entered this crisis in a strong financial position, we are taking immediate actions to reduce expenses and manage liquidity so we can maintain strong financial footing on the other side of it.”
Herman Miller is implementing a range of actions aimed at temporarily reducing costs and preserving liquidity. These actions include a 10% reduction in working hours with a resulting 10% reduction in cash compensation for the majority of the company’s salaried workforce. Additionally, the company is immediately suspending certain employer-paid retirement contributions and will suspend previously planned compensation increases and cash incentive bonus programs for the upcoming fiscal year ending May 2021. The company will continue to evaluate further ways to manage costs in line with reduced revenue levels.
In addition to the 10% reduction in pay, Herman Miller’s CEO and its executive leadership team will defer additional levels of salary for a minimum of six months to further preserve cash flow in the near-term. This will include an incremental salary deferral of 50% for the Chief Executive Officer, and 15% for the rest of the leadership team.
Despite these actions, Herman Miller’s design, development and manufacturing capabilities are to help communities around the globe. Efforts include providing frontline health care workers with necessary face masks and shields and partnering with local companies to divert operational capabilities to support the demand for temporary health care facilities. Donations and delivery of supplies are being managed by Herman Miller Cares, the company’s private foundation and global giving program.
“On behalf of the entire organization, I’d like to thank all our employees for their strength and character during these uncertain times,” said Owen. “I am proud to be working alongside them, and, as we have demonstrated in the past, I am confident we will successfully navigate this disruption together.”
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About Herman Miller
Herman Miller is a globally recognized provider of furnishings and related technologies and services. Since its inception in 1905, the company has relied on innovative design to help people do great things. The global design leader has evolved into Herman Miller Group, a family of brands that collectively offers a variety of products for environments where people live, learn, work, and heal. The family of brands includes Colebrook Bosson Saunders, Design Within Reach, Geiger, HAY, Maars Living Walls, Maharam, naughtone, Nemschoff, and Herman Miller. For more information, visit www.hermanmiller.com/about-us.