Denim giant Levi Strauss & Co. said on Thursday (Friday AEDT) that it’s slashing its global corporate workforce by 10 to 15 per cent in the first half of the year as part of a two-year 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 $US100 million ($AU151 million) in the current fiscal year. It estimates it will book charges of $US110 million to $US120 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 per cent to $US1.64 billion in the fourth quarter that ended November 26. That came below analysts’ expectations for $US1.66 billion, according to FactSet.
The announcement comes as the company, which has been under the leadership of 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 chair 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 San Francisco 49ers.
The deal is worth a combined $US170 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.
