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Levi Strauss, the American staple clothing maker, announced Thursday that it will lay off up to 15% of its global workforce in the first half of this year in a restructuring plan.
Between 10% and 15% of a company’s workforce could be affected by layoffs, but the company said it has about 19,000 employees worldwide in its retail and corporate sectors, but it has no specific details. The company did not say how many employees would be at risk of being laid off.
The news comes on the heels of a week of sales guidance from the denim company, which released its fiscal 2023 fourth-quarter results on Thursday, predicting that its 2024 net revenue will increase by just 1% to 3% year over year. He reported that he expected that.
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This was significantly lower than Wall Street’s forecast for 4.7% sequential growth.
Net revenue for the entire fiscal year 2023 was “flat” compared to fiscal year 2022.
Fundamental changes are also expected as Levi Strauss & Co.’s President and CEO Chip Berg retires and will be succeeded by Michelle Glass, the company’s next president and CEO. However, it has not yet been specified when that will happen in the coming weeks.
“We have a strong pipeline of newness and innovation to launch this year to stimulate consumer demand, and accelerate international growth, grow denim apparel into a lifestyle business, and drive DTC “We believe there are significant growth opportunities for this company, including our leadership in the company,” said Mr. Glass. said in a company release. “The success of these strategic initiatives drove our growth in the fourth quarter and positions us to generate significant long-term shareholder value in the years ahead.”
The company also plans to discontinue its body-positive brand Denizen and shift its focus to athleisure categories, including its Beyond Yoga brand, which grew 14% in the quarter.
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“This past year has been a period of great volatility,” Glass said during the earnings call. “We are taking a cautious approach to the future.”
Levi Strauss & Co. was down more than 12% from a year ago as of Friday morning.
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