- Simon, the largest U.S. mall owner in the U.S., furloughs 30% of workforce
- The mall operator employs around 4,500 workers
- Simon stock price trades more than 4% lower in New York, totalling monthly losses to over 56%
Simon Property Group (NYSE:SPG), the largest shopping mall operator in the United States, furloughed 30% of its employees, in addition to permanent job cuts amid the coronavirus outbreak, CNBC reports.
Simon employs around 4,500 workers. Following the CNBC report, shares of the company slid a further 4%, totalling monthly losses to over 56%.
Fundamental analysis: Lessees struggling to pay the rent for April
According to CNBC, the furlough impacts both full-time and part-time staff, while some of the staff has been dismissed permanently. Moreover, the CEO David Simon will take a 100% pay cut for the duration of the pandemic, while senior managers will take a 30% cut to their salaries.
It was earlier reported that numerous mall lessees are struggling to pay the rent for April, while some of them are closing their shops permanently.
On March 18, the mall operator announced it will close all of its retail properties, including Malls, Premium Outlets, and Mills in the U.S, as a result of the spread of COVID-19.
“The health and safety of our shoppers, retailers and employees is of paramount importance and we are taking this step to help reduce the spread of COVID-19 in our communities,” said David Simon, Chairman, Chief Executive Officer and President of Simon said.
In February, just around the time when the pandemic started spreading across the globe, Simon announced it reached an agreement to acquire an 80% ownership interest in the Taubman Realty Group (TRG), which TRG owns, or manages – 26 regional shopping centers in the U.S. and Asia.
Technical analysis: Stock trades near lows
Shares of Simon have fallen around 4% following the reports. As a result, the stock price will likely now close the month with more than 55% losses, by far the biggest losses in the history of the company.
For instance, just in December last year the stock was trading near the $200 handle, while it now struggles to keep its head above the $50 mark. This month’s low of $43.52 is also the 10-year low for the stock price. Looking lower, the next targets for the sellers are levels around $32 and $23.
Shares of Simon Property Group have fallen 4% today after CNBC reported that the mall operator furloughed 30% of its staff, in addition to permanent job cuts. Almost two weeks ago, Simon announced it will close all shopping malls due to the coronavirus outbreak.