A Massive Clothing Company is Now Laying Off Its Workforce

January 26, 2024

A massive clothing company is now laying off its workforce to accelerate the company’s long-term profitable growth.

Levi’s has announced the company will cut 10% to 15% of its corporate workforce in its first phase of its new “productivity initiative”.

The first phase of what is expected to be a two-year optimization effort will see a 10% to 15% reduction of Levi’s global corporate workforce that will take place in the first half of 2024, reports Retail Touch Points.

The initiative also will include optimizing the company’s operating model and structure; redesigning business processes; and identifying opportunities to reduce costs while simplifying processes as the company continues to focus on its previously announced “Brand Led” and “DTC First” strategies.

Levi’s expects to generate net cost savings of $100 million in fiscal year 2024 as a result of these efforts, although the layoffs in the first quarter are expected to result in one-time restructuring charges of $110 to $120 million.

The productivity initiative was announced along with reporting for the company’s Q4 and FY 2023, which ended Nov. 26.

Net revenues for the year were flat compared to FY 2022, at $6.2 billion, while the year’s adjusted net income of $441 million was down from $604 million in FY 2022.

In Q4 2023, net revenues increased 2% on a constant-currency basis compared to Q4 2022, rising to $1.6 billion.

DTC net revenues increased 10% on a constant-currency basis, driven by growth in both company-operated mainline and outlet stores as well as ecommerce.

Wholesale net revenues declined 3% on a constant-currency basis, as growth of Levi’s brands in the U.S. and Asia was offset by a decline in Europe.

“We achieved a strong Q4 performance, inflecting to growth along with substantial margin expansion, generation of positive free cash flow and closing the year with record net store openings,” said Harmit Singh, Chief Financial and Growth Officer of Levi’s in a statement.

“Looking forward, we are focused on margin execution supported by gross margin expansion and by our global productivity initiative, which gives us clear line of sight to significant annual cost savings.”

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Also Read: A Massive Furniture Company Now Lays Off 1,650 Employees

Other Economy News Today

A massive department store now closes for good in a major city, listing sales of up to 70% off, sources report.

One of the last remaining Sears is offering major discounts as it prepares to leave the greater New York City area behind, reports The-Sun.

The closure will leave just 12 Sears locations open nationwide, with only one in the Northeast.

Jersey City, New Jersey’s Newport Mall will lose the major retailer on March 3, an employee confirmed.

Once a titan of American shopping, the company peaked at over 4,000 locations in 2011. It was the world’s largest retailer at the time, The New York Post reported.

The company, bought by KMart in 2004, declared bankruptcy in 2018, by which point it had hundreds of stores.

With over a month left before the shutdown, closing sales of up to 70% are in full swing, reports The-Sun.

The closure was announced on Facebook earlier this month.

“Store Closing Sale going on now at your Jersey City Sears,” the post said simply.

“Stop in today for great bargains!”

The post included a photo of the department store, devoid of people, with signs advertising that “everything” is at least 25% to 75% off.

The post quickly got dozens of reactions.

“Oh god NO!” one customer replied.

Others were unsurprised, given the company’s rapid decline.

“Knew it was just a matter of time,” a user said. “Any Sears/KMarts still open in 2024 just flabbergasts me.”

Any fans of the company will have a long way to travel before they find another location. The next closest Sears is in Massachusetts, outside Boston.

The midwest already lost all of its Sears locations, according to data website Scrape Hero.

In addition to the one in Massachusetts, just four states still have Sears locations.

There are four stores in California, three in Florida, two in Washington, and one in Texas.

There is also one location remaining in Puerto Rico.

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Also Read: A US Company Now Declares An Unexpected Bankruptcy

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