Levi Strauss is planning to cut jobs as part of a restructuring effort due to expectations of weaker sales this year.
The layoffs, affecting at least 10 per cent of the global corporate workforce, will happen in the first half of the year and may impact up to 15 per cent of the corporate employees.
Levi Strauss is an American clothing company famous around the world for its Levi’s brand of jeans made from denim. The company, which had over 19,000 employees as of November, anticipates restructuring charges of $110 to $120 million in the first quarter.
This move follows a trend of early-year layoffs in the retail industry, with companies such as Macy’s and Wayfair also announcing job cuts recently.
Levi’s reported its fiscal fourth-quarter earnings and projected a less optimistic fiscal year ahead. The company expects a one to three per cent increase in revenue for the full fiscal year, falling short of the 4.7 per cent anticipated by Wall Street.
The company is expected to earn between $1.15 and $1.25 per share this year, which is less than what experts thought. In the last three months until November 2023, the company made $126.8 million in profit, down from $150.6 million the previous year. Despite this, its overall income for those three months was $1.64 billion, a three per cent increase compared to last year. So, while recent profits are down, the total money the company made went up a bit.