Life Time Fitness CEO: 'No choice' but to furlough 90 percent of 40,000 employees
CHANHASSEN, Minn. (FOX 9) - Life Time Fitness CEO Bahram Akradi says 90 percent of his 40,000 employees will need to be furloughed unless the government gives him a specific date to re-open his clubs.
Life Time, which has 28 Minnesota clubs and dozens more across the country, closed its health centers after Gov. Tim Walz ordered all bars, restaurants and other in-person businesses closed last week in an effort to curb the spread of COVID-19.
On Fox News Wednesday night, Akradi said he pledged to pay his roughly 40,000 employees through Friday, but said he needs a firm date in order to plan for his employees’ futures.
He said the actual date does not matter as much, whether it is Easter or May 1 or whenever, but without a date, he said he is “paralyzed and crippled.”
Once his clubs shut down, Akradi said he cancelled 100 percent of his and his other executives’ compensation.