Starting today, Diamond Comic Distributors will furlough some of its employees to offset the financial damage done by the coronavirus, according to a statement released by the company.
Diamond did not say how many employees they were furloughing, but they did say that all employees "enrolled in one of the group’s health, vision and/or dental insurance plans will maintain coverage." A small group of workers will continue to prepare the company for when they are able to resume normal distribution practices.
"This was not a decision we made lightly, and we only do so to protect our company's financial future and preserve jobs," the distributor said in a statement. "We have taken several steps already to mitigate our financial exposure including delaying payment to publishers, extending vendor payment terms and significantly reducing executive compensation. It is our goal that, on the other side of this crisis, our furloughed employees will return to their roles."
The news comes nearly two weeks after Diamond announced that it would pay vendors and publishers 25 percent of the weekly amount due. The company's team of executives also took a 50 percent pay cut.