Levi’s to slash global workforce 10-15%
NEW YORK CITY: Denim giant Levi Strauss & Co. said Thursday that it is slashing its global corporate workforce by 10 to 15 percent in the first half of the year as part of a twoyear restructuring plan that seeks to cut costs and simplify its operations.
The company employed about 19,100 people as of the end of November, according to its annual report filed with securities regulators.
San Francisco-based Levi’s said the restructuring is expected to generate net cost savings of $100 million in the current fiscal year. It estimates it will book charges of $110 million to $120 million in the first quarter and said there could be more restructuring charges ahead.
Levi’s announced on Thursday that its net revenue was up 3 percent to $1.64 billion in the fourth quarter that ended November 26. That came below analysts’ expectations for $1.66 billion, according to FactSet.
The announcement comes as the company, which has been under the leadership of Chief Executive Officer (CEO) Chip Bergh since 2011, will be handing over its reins on January 29 to Michelle Gass, who left her CEO role at Kohl’s to become president of Levi’s in January 2023. Bergh will stay on as executive vice chairman until he retires in late April, Levi Strauss said.
Levi’s announced the layoffs the same day it unveiled a proposed 10-year extension to the naming rights for Levi’s Stadium, home of the National Football League team San Francisco 49ers. The deal is worth a combined $170 million and is subject to approval by the Santa Clara Stadium Authority’s board, which is expected to be granted Tuesday. It will give Levi’s the stadium’s naming rights through the 2043 NFL season.