Levi’s to cut 700 non-retail, non-manufacturing jobs
Levi’s plans to cut 700 non-retail and non-manufacturing jobs due to the economic downturn caused the coronavirus pandemic, the clothing company announced Tuesday.
The denim company announced that it will cut about 15 percent of its workforce to generate an annualized savings of $100 million.
Levi’s CEO Chip Bergh said the cuts were a “difficult decision” and are expected to be “substantially completed” by the end of the year. He said the layoffs will allow Levi’s “to become a leaner and more market-responsive organization.”
The company has experienced low sales as stores shut down to prevent the spread of the coronavirus, leading to a net revenue drop of 62 percent and a net loss of $364 million. Bergh attributed the losses to the pandemic.
“We started the year with strong momentum, but the global pandemic and economic crises had a significantly negative impact on our second quarter results, as our stores and most wholesale doors were closed around the world for the majority of the quarter,” he said in a release.
Bergh said that Levi’s plans to focus more on its digital growth and promoting its products to “have an even stronger focus” on sustainability and the Generation Z demographic.
“We believe this will enable us to further grow our market leadership position and emerge from this crisis a stronger company,” he said.
Most retailers are struggling financially after the pandemic shut down stores around the world, but Levi’s has taken a particular hit as more people are trading jeans for clothing such as athleisure while staying at home, Business Insider noted.