LVMH tells Tiffany staff to return to their office two days a week

After managing Tiffany & Co. took over, says LVMH Must Hennessy Louis Vuitton SE the American jewelers’ employees to return to office.

The French luxury goods giant has instructed Tiffany’s corporate staff to return to the office two days a week from March 1, according to people familiar with the situation. “At the moment of change, it is critical that we take a hybrid approach to remote work,” LVMH LVMUY 1.56%

said employees in a memorandum this week.

Tiffany will join a small list of major New York companies that employees need to return to the office, including JPMorgan Chase & Co. In Houston, Shell Oil Co. and some other energy companies, have already brought workers back in May or June. to send them home again amid coronavirus outbreaks.

A Tiffany spokesman made no immediate comment.

Some companies hoping to bring employees back in the spring are moving the target to late summer and beyond, as the number of cases of Covid-19 is still higher. About 14% of New York City employees, according to data from Kastle Systems, a security firm that tracked access cards at offices, returned.

The seven-day average of the percentage of New York City Covid-19 tests returning positive is 5%, according to government data, lower than a recent high of 6.4% in early January. The World Health Organization recommends that the positivity rate remain below 5% for at least two weeks before the closure restrictions are eased.

The acquisition of LVMH from Tiffany was shut down on January 7 after a turbulent few months in which he tried to clear the deal. It accused Tiffany executives of mismanaging the company during the pandemic and fought to renegotiate the price, prompting both companies to sue each other. In the end, LVMH bought Tiffany for $ 15.8 billion, a discount of 2.6% from the original price.

Now, under the leadership of CEO Bernard Arnault, LVMH must revive Tiffany at a time when important spending has been taken away from tourists and when the wider industry is still suffering from the damage caused by the pandemic. One of the people familiar with the situation said LVMH hopes people in the office will speed up.

LVMH believes that people being physically present is an important part of a successful and collaborative culture, another said.

In early January, LVMH installed new leadership at Tiffany. LVMH CEO Anthony Ledru has returned to Tiffany, where he previously oversaw North American operations. Mr. Arnault’s son, Alexandre Arnault, has been named executive vice president for product and communications.

The work in progress is in line with LVMH’s policies for other companies, including Louis Vuitton and Dior, and its staff in France. According to one of the people, LVMH’s American employees have been working with this hybrid model since September. The hybrid schedule for two days a week has been common in France since the government reopened its offices after a mid-December lockout.

Employees’ temperature will be checked as they enter the building, hand sanitizer will be placed throughout, masks will be required and will be provided and rules for social distance will apply. According to the memorandum, conference rooms will be at half capacity and only two people will be allowed in lifts at the same time.

According to one of the people familiar with the situation, some workers are eager to return to work after almost a year of being locked up indoors. But others are struggling with childcare issues, and some do not feel comfortable taking public transportation until more vaccines are available, this person said. LVMH takes into account the considerations and safety of staff when implementing the hybrid policy, and employees will have the option, according to the memorandum, to arrive late and leave early.

Tiffany had more than 14,000 employees as of December, including staff at its stores around the world. As of January 2020, approximately 5,000 of its employees were in the U.S. Tiffany and many of its approximately 300 stores reopened around the world.

contributed to this article.

Plexiglass dividers and floor stickers may not be permanent, but the pandemic will permanently change offices. Experts from the architectural and fixed industry share how they will get back to work and what offices will look like in the future. Photo: Cesare Salerno for The Wall Street Journal

Write to Suzanne Kapner by [email protected]

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