Company estimates restructuring charges of $110 to $120 million in first quarter
Clothing firm Levi Strauss & Co (LS&Co) has announced that it is laying off 10 to 15% of its global corporate workforce as part of an ongoing restructure within the organisation.
The restructure is part of the first phase of a global productivity initiative that will be implemented in the first half of 2024, according to the clothing firm.
"As a result, the company expects to record estimated restructuring charges of $110 to $120 million in the first quarter," it said in a statement. "Additional restructuring charges may be incurred as the company progresses further with this initiative."
The firm did not go into specifics about how many employees will be laid off across its global offices, and from which departments they will come from.
CNCB reported, however, that the clothing company has over 19,000 employees as of November 2023, including an unspecified number of corporate staff.
LS&Co adds to the growing number of organisations this year that are greeting 2024 with the announcement of layoffs, extending the widespread retrenchments that took place across the world over the past years.
New Levi CEO
The layoff was also announced days before Michelle Gass assumed the role of president and chief executive officer on Monday.
Gass succeeds Chip Bergh, who said that he is proud of what the company has accomplished under his 12-year tenure.
"While 2023 was a challenging year, we ended on a strong note and I am optimistic about the future. I couldn't be more confident in Michelle as my successor, and together with the rest of our team, they position the company to thrive in its next phase of growth," Bergh said in a statement.
Gass said she is honoured to guide the organisation into its "next era of growth."
"LS&Co. is a destination for the very best talent because of its history, its products and its values, and this past year I've had the unique opportunity to immerse myself in the business and meet so many members of our exceptional teams around the world. I cannot wait to see what we achieve together," the new CEO said in a statement.