Levi's: plans to cut 10% to 15% of its workforce

(CercleFinance.com) - Levi's announced on Thursday evening that it plans to reduce its workforce by 10% to 15% worldwide in order to improve productivity following a fiscal year 2023 described as 'difficult'.


The American clothing and accessories group specifies that this decision should result in a restructuring charge of between 110 and 120 million in its first-quarter accounts.

The San Francisco-based brand adds that additional provisions may be booked in the future, depending on the progress of these cost-cutting measures.

This announcement comes at a time when Michelle Gass, the former head of American department store chain Kohl's, who previously worked for Starbucks and P&G, is due to take on the role of CEO, replacing Chip Bergh, who is leaving the company.

In a press release, however, Levi's said it had managed to end 2023 on a positive note, with sales up 3% on a reported basis, to $1.6 billion.

Its forecasts for 2024 are considered less encouraging, the group having said it expected limited sales growth of 1% to 3% this year.

Earnings per share (EPS) are expected to be between $1.15 and $1.25 for the full year, compared with $1.10 in 2022.

Following these announcements, Levi's shares were up on the New York Stock Exchange early Friday morning, gaining more than 2% after opening in the red.

Copyright (c) 2024 CercleFinance.com. All rights reserved.