LVMH tells Tiffany’s staff to return to the office two days a week

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

A Tiffany spokesman made no immediate comment.

Some companies that had wanted to reclaim employees this spring are moving that goal into late summer and beyond, as the Covid-19 case count remains high. About 14% of New York City workers have returned, according to data from Kastle Systems, a security company that has been tracking access card slips to offices.

The seven-day average of New York City’s percentage of Covid-19 tests returning positive is 5%, according to state data, below the recent high of 6.4% in early January. The World Health Organization recommends that positivity rates be kept below 5% for at least two weeks before easing stop restrictions.

The acquisition of Tiffany by LVMH closed on January 7, after a tumultuous few months in which it tried to get out of the deal. He accused Tiffany executives of mismanaging the company during the pandemic and fought to renegotiate the price, prompting both companies to sue. In the end, LVMH bought Tiffany for $ 15.8 billion, a 2.6% discount off the original price.

Now, LVMH, led by chief executive Bernard Arnault, must revive Tiffany at a time when it has been deprived of crucial tourism spending and the industry at large continues to burst the damage caused by the pandemic. LVMH hopes having people in the office will accelerate integration, said one of the people who knew the situation.

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

In early January, LVMH installed a new leadership in Tiffany. LVMH executive Anthony Ledru returned to Tiffany, where he previously oversaw U.S. operations, as chief executive. Mr. Arnault’s son, Alexandre Arnault, was appointed executive vice president of products and communications.

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

Employees will be checked for temperature as they enter the building, hand sanitizers will be placed, masks will be made and rules of social distancing will be provided. The conference rooms will have an average capacity and only two people will be allowed to access the elevators at a time, according to the note.

Some workers are eager to return to work after nearly a year of confinement at home, according to one of the people familiar with the situation. But others are struggling with child care issues, and some don’t feel comfortable taking public transportation until vaccines are more available, that person said. LVMH takes these considerations and staff safety into account when developing the hybrid policy, and employees will have the option to arrive late and leave early, according to the note.

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

—Chip Cutter

contributed to this article.

Write to Suzanne Kapner to [email protected]