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NEW YORK (AP) — Denim large Levi Strauss & Co. mentioned Thursday that it’s slashing its world company workforce by 10% to fifteen% within the first half of the 12 months as a part of a two-year restructuring plan that seeks to chop prices and simplify its operations.
The corporate employed about 19,100 individuals as of the top of November, based on its annual report filed with securities regulators.
San Francisco-based Levi’s mentioned the restructuring is anticipated to generate web value financial savings of $100 million within the present fiscal 12 months. It estimates it would guide costs of $110 million to $120 million within the first quarter and mentioned there could possibly be extra restructuring costs forward.
Levi’s introduced Thursday that its web income was up 3% to $1.64 billion within the fourth quarter that ended Nov. 26. That got here beneath analysts’ expectations for $1.66 billion, based on FactSet.
The announcement comes as the corporate, which has been underneath the management of CEO Chip Bergh since 2011, will likely be handing over its reins on Jan. 29 to Michelle Gass, who left her CEO position at Kohl’s to grow to be president of Levi’s in January 2023. Bergh will keep on as government vice chair till he retires in late April, Levi Strauss mentioned.
Levi’s introduced the layoffs the identical day it unveiled a proposed 10-year extension to the naming rights for Levi’s Stadium, dwelling of the San Francisco 49ers. The deal is value a mixed $170 million and is topic to approval by the Santa Clara Stadium Authority’s board, which is anticipated to be granted Tuesday. It is going to give Levi’s the stadium’s naming rights by means of the 2043 NFL season.
—Anne D’Innocenzio, Related Press
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