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 asked employees to return to the office, including JPMorgan Chase & Co. In Houston, Shell Oil Co. and other energy companies have been bringing workers back since May or June, only to send them home again on the back of coronavirus outbreaks.

A Tiffany spokeswoman had no immediate comment.

Some companies that hoped to bring employees back this spring are moving their target to the end of summer and beyond, as the number of Covid-19 cases remains high. About 14 percent of New York workers returned, according to Kastle Systems, a security firm that tracked office access cards.

The seven-day average of the percentage of Covid-19 tests in New York City that return positive is 5%, according to state data, down from 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 easing closure restrictions.

LVMH’s acquisition of Tiffany ended on January 7, after several tumultuous months in which it tried to withdraw from the business. He accused Tiffany’s directors of mismanaging the company during the pandemic and fought to renegotiate the price, prompting both companies to sue. Finally, LVMH bought Tiffany for $ 15.8 billion, a 2.6% discount from the original price.

Now, LVMH, led by CEO Bernard Arnault, needs to revive Tiffany at a time when it has been deprived of crucial tourism spending and when the wider industry continues to spin due to pandemic damage. LVMH hopes having people in the office will speed up integration, said one person familiar with the situation.

LVMH believes that having people physically present is an important part of a culture of success and collaboration, said another person.

In early January, LVMH installed a new management at Tiffany. LVMH executive Anthony Ledru returned to Tiffany, where he previously oversaw North American operations as executive director. Mr Arnault’s son, Alexandre Arnault, has been appointed executive vice president for 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 French staff. American employees of LVMH have been working with this hybrid model since September, according to one of the people. The two-day-a-week hybrid program has been common in France since the government reopened offices after closing in mid-December.

Employees will have their temperature checked at the entrance to the building, hand sanitizer will be placed everywhere, masks are needed and will be provided, and social distancing rules will apply. The conference rooms will have a capacity of half and only two people will be allowed in elevators at the same time, according to the note.

Some workers are eager to return to work after nearly a year in prison at home, according to a person familiar with the situation. But others are struggling with childcare issues, and some do not feel comfortable taking public transportation until vaccines are widely available, the person said. LVMH takes these considerations and staff safety into account as they implement the hybrid policy, and employees will have the option to arrive late and leave earlier, according to the note.

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

—Chip Cutter

contributed to this article.

Write to Suzanne Kapner to [email protected]