Forever 21, one of the most popular retailers with teens and reportedly worth $3 billion has demoted some full-time employees to part-time status depriving them from benefits, according to a leaked memo.
Earlier this year the retailer was called “the most transformative retail concept” after sales soared in the US. But in a surprise move, which leaves many full-time employees full of uncertainty, Forever 21 is demoting them to part-time positions.
The memo, leaked by a disgruntled employee, states that the changes take effect on Sunday, August 18, while the loss of benefits takes effect at the end of the month, August 31.
Forever 21 employees affected by this decision will no longer have access to paid time off, mainly vacation and personal days.
Some labor activists are saying that the retailer is punishing workers in retaliation for Obamacare.
The leaked memo is signed by Carla Macias, associate director of Human Resources for the company and states Forever 21 is undertaking a “company-wide audit of staffing levels,” staffing needs, and company finances as the reason for the changes.
A company spokesperson backed the reasons given in the memo and stated the decision has nothing to do with Obamacare, but is a business related decision.
Forever 21 spokesperson adds that the demotions affect less than one percent of US employees, which amount to about 30,000 nationwide. This demotion could potentially affect 300 employees.
AOL Jobs emailed the retailer asking if any managerial positions were affected by this realignment. No reply was given by the company.
Many consumers are not buying Forever 21’s explanations for the cuts and are taking to social media to let the retailer know exactly how they feel.
The Facebook page has seen negative comments and threats from customers who say they will stop shopping at the stores and criticizing the well publicized Christian beliefs the company holds.
Some employers, who don’t agree with the affordable care act (Obamacare) have threaten to cut full-time positions and many are hiring temp or part-timers.
But analysts believe the changes companies are making has more to do with the global economy than any changes Obamacare will bring.
Forever 21 is a privately owned company. You can view the leaked memo below,