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

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

A Tiffany spokesman did not immediately comment.

Some companies hoping to bring employees back this spring are shifting that target towards the end of the summer and beyond, as Covid-19’s case count remains high. About 14% of New York City workers have returned, according to data from Kastle Systems, a security company that tracks access cards in offices.

The seven-day average of the percentage of New York City Covid-19 tests that tested positive is 5%, according to state data, compared to a recent 6.4% rise in early January. The World Health Organization recommends that positivity rates stay below 5% for at least two weeks before easing termination restrictions.

Tiffany’s acquisition by LVMH ended on January 7, after a few tumultuous months in which she tried to give up the business. He accused Tiffany executives of mismanaging the company during the pandemic and struggled to renegotiate the price, prompting the two companies to sue each other. In the end, LVMH bought Tiffany for $ 15.8 billion, a 2.6% discount on the original price.

Now, the LVMH, led by Chief Executive Bernard Arnault, is expected to resurrect Tiffany at a time when it has been deprived of crucial tourist spending and when the industry in general is still suffering from the damage caused by the pandemic. LVMH hopes that having people in the office will accelerate integration, said a 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 new leadership at Tiffany. LVMH executive Anthony Ledru returned to Tiffany, where he previously oversaw operations in North America, as chief executive. Alexandre Arnault, son of Mr. Arnault, was appointed executive vice president of products and communications.

The back to work notice is in line with LVMH’s policies for its other companies, which include Louis Vuitton and Dior, and their team in France. LVMH employees in the USA have been working with this hybrid model since September, according to one person. Hybrid programming two days a week has been common in France since the government reopened offices after a blockade in mid-December.

Employees will have their temperature checked upon entering the building, hand sanitizer will be placed everywhere, masks will be required and will be provided and social detachment rules will be in place. The conference rooms will be at half capacity and only two people will be allowed in the elevators at the same time, according to the memo.

Some workers are eager to return to work after almost a year of confinement at home, according to a person familiar with the situation. But others are struggling with child care problems and some are not comfortable using public transport until vaccines are more widely available, said that person. LVMH is taking these considerations and staff safety into account when implementing the hybrid policy, and employees will have the option of arriving late and leaving early, according to the memo.

Tiffany had more than 14,000 employees in December, including teams at its retail stores worldwide. In January 2020, about 5,000 of its employees were in the United States. Tiffany has reopened many of its approximately 300 retail stores worldwide.

—Chip Cutter

contributed to this article.

Write to Suzanne Kapner at [email protected]