Forever 21 Slashes Employee Hours, Benefits In Fear Of Obamacare

Yet another company is screwing its own employees.

forever 21, memo, employee, benefit, obamacare


Carbonated.TV has been following the numerous stories lately involving underpaid employees having their hours cut, and their benefits taken away by their companies. Usually, these stories have involved mega-corporations like Wal-Mart and McDonalds, but today another company - Forever 21 – has opted to slash employee hours and benefits because of Obamacare. Forever 21 released this memo to employees yesterday. The memo soon leaked and has now caused a massive backlash aimed at Forever 21.

In response to the public backlash, Forever 21 recently released a public statement regarding the memo. The official Forever 21 statement reads:

Thank you for reaching out. Forever 21, like all retailers, staffs its stores based on projected store sales, completely independent of the Affordable Care Act. After a recent evaluation, Forever 21 realigned its staffing needs to better reflect sales expectations. This realignment impacted less than 1% of all U.S. store employees. Forever 21 values all of its employees and made every effort to affect as few employees as possible in this realignment.

Public backlash to Forever 21’s slash of employee hours and benefits has been strong and immediate. On Forever 21’s Facebook page several comments call out Forever 21 for its recent business decisions.

Forever 21 recently hired a workforce management company called Kronos. It is likely that Kronos management encouraged Forever 21 execs to slash employee hours and benefits to save money.

It is believed that around 3,000 or Forever 21’s 30,000 employees will be affected by this decision.

As Obamacare draws, more companies will look to do whatever they can to stay profitable. The underemployment gap goes beyond Wal-Mart and McDonalds. The negative effects of corporate greed are everywhere.

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