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

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

A spokesman for Tiffany made no immediate comment.

Some companies that had hoped to bring workers back this spring are pushing that goal to late summer and beyond, as the number of Covid-19 cases remains high. About 14% of New York City employees have returned, according to data from Kastle Systems, a security company that has tracked the swiping of access cards in offices.

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

LVMH’s acquisition of Tiffany was completed on January 7, after a tumultuous few months trying to get out of the deal. It accused Tiffany executives of mismanaging the company during the pandemic and fought to renegotiate the price, leading both companies to sue each other. Ultimately, LVMH bought Tiffany for $ 15.8 billion, a 2.6% discount from the original price.

Now LVMH, led by Chief Executive Bernard Arnault, needs to revive Tiffany at a time when it has not incurred critical tourist spending and the wider industry is still reeling from the damage caused by the pandemic. LVMH hopes having people in the office will speed up integration, one of those familiar with the situation said.

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

In early January, LVMH installed new leadership at Tiffany. LVMH Director Anthony Ledru returned to Tiffany, where he previously led the North American operations, as CEO. Alexandre Arnault, the son of Mr. Arnault was appointed Executive Vice President of Product and Communications.

The edict to return to work is in line with LVMH policy for its other companies, including Louis Vuitton and Dior, and its personnel in France. According to one of the people, the US employees of LVMH have been working with this hybrid model since September. The two-day-a-week hybrid schedule has been common in France since the government reopened offices after a lockdown in mid-December.

Employees will have their temperature checked upon entering the building, hand sanitizer will be placed throughout, masks are required and provided, and social distance rules are in effect. Conference rooms are half the capacity and according to the memo, only two people are allowed to hitchhike at a time.

According to one of those familiar with the situation, some workers would like to return to work after nearly a year of detention at home. But others are grappling with childcare issues, and some are uncomfortable using public transportation until vaccines are more widely available, this person said. LVMH takes those considerations and employee safety into account when rolling out its hybrid policy, and according to the memo, employees have the option of arriving late and leaving early.

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

—Chip Cutter

contributed to this article.

Write to Suzanne Kapner at [email protected]