Levi Strauss to eliminate about 800 jobs
Mar. 26, 2014
SAN FRANCISCO (AP) — Levi Strauss & Co. will eliminate about 800 jobs, almost 20 percent of its non-retail and non-manufacturing employees, over the next 12 to 18 months.
The privately held company said that its restructuring plan will help it become more competitive, lower costs and improve its financial health.
Last month, the company said that its fourth-quarter gross profit weakened because it had to increase markdowns due to a slower holiday season and softness in its Levi's juniors and misses businesses.
Levi Strauss said Wednesday that the cuts will primarily be management positions across the world. It is also getting rid of what it considers duplicate roles. Levi Strauss, which also makes the Dockers and Denizen brands, said that final plans will vary by country, and estimates for headcount and the timing of the job cuts may change.
The company's products are sold in about 2,800 retail stores and shop-in-shops globally, as well as online.
The job cuts are part of the first phase of a restructuring plan that is expected to result in about $75 million to $100 million in annual savings, before accounting charges related to those cuts. Those charges, which will total about $65 million, will mostly be recorded in the first quarter.
The entire restructuring plan is expected to deliver $175 million to $200 million a year in savings, the company said.
Levi Strauss, which is based in San Francisco, said that additional charges will be recorded in the future.