Levi’s plans to cut up to 15% of staff
Levi Strauss & Co. is set to reduce its global corporate workforce by up to 15% in the first half of this year.
The San Francisco company disclosed the impending layoffs during its fourth-quarter earnings call to investors on Thursday, the same day it announced its $170 million commitment to maintain its sponsorship of the San Francisco 49ers’ stadium.
During the call, Chip Bergh, the outgoing president and CEO of Levi Strauss & Co., also extended a welcome to his successor, Michelle Gass.
“I am proud of what we have accomplished over the past twelve years. By putting the Levi’s brand at the center of culture, we revitalized this iconic brand and transformed our financials putting us in a position where we are stronger today,” Bergh said in a statement. “While 2023 was a challenging year, we ended on a strong note and I am optimistic about the future.”
Levi Strauss & Co. had approximately 19,000 employees globally as of November. The company did not provide specific details on how these workforce reductions would impact its long-term financial growth.
The earnings report revealed net revenues of $6.2 billion for 2023, aligning with figures from the previous year. Looking ahead to 2024, the company forecasts net revenues to grow at a rate of 1-3% year over year.
“We have a strong pipeline of newness and innovation launching this year to fuel consumer demand,” Gass said. “And I am confident in the significant growth opportunities ahead for this company including accelerating international growth, becoming a denim apparel lifestyle business, and leading with” direct-to-consumer marketing.
Despite this positive financial outlook, Levi Strauss shares dipped by more than 2% in afterhours trading Thursday following the announcement of the impending layoffs.