Canada Goose Holdings Inc has laid off about 125 workers, as the Covid-19 pandemic saps demand for the company’s luxury parkas, the Wall Street Journal reported on Wednesday.

Luxury retailers, including Ralph Lauren and Capri Holdings, are among the worst-hit companies as the novel coronavirus pushes consumers to snub discretionary products for essentials such as packaged foods, forcing companies to furlough employees and cut down on investments.

On Wednesday, Canada Goose said employees who were laid off will receive compensation packages and extended benefits. They can also keep their work computers and phones, according to the WSJ report.

Canada Goose did not immediately respond to a Reuters request for a comment.

The company said last month it was planning to reopen its Canadian facilities to make personal protective equipment (PPE), adding that, at full capacity, as many as 900 employees across Canada were going to be working to produce PPEs.

In March, the company suspended the long-term outlook it had provided last year.