Levi Strauss to cut 800 jobs
Levi Strauss & Co is planning to cut 800 jobs as part of a global productivity initiative.
In a statement the company said the initiative will be implemented in phases over the next 12 to 18 months. When complete, it is expected to generate annualized cost savings in the range of $175-200 million.
The first phase of the programme will deliver approximately $75-100 million in annualized savings before restructuring and related charges.
Levi Strauss & Co said the staff cuts will apply to non-retail and non-manufacturing employees and will reflect a reduction in management layers, the removal of duplicative roles and the regrouping of country clusters.
Never Miss a Retail Update!Other plans include streamlining the company’s product development, planning and go-to-market strategies, implementing efficiencies across its supply chain and distribution network, adopting lower-cost service-delivery models, and pursuing more disciplined procurement practices.
Chip Bergh, Levi Strauss & Co president and chief executive, said: “Today’s announcement reinforces our ongoing commitment to improving the structural economics of the business and further strengthening the financial health of the company
“These changes will make us more competitive—both in our cost structure and in the marketplace—improving our agility and enabling us to focus on innovation, retail productivity, omni- channel capabilities and enhanced consumer experience in stores.”
