Levi Strauss is planning to cut jobs as part of a restructuring effort due to expectations of weaker sales this year. The layoffs will affect at least 10% of the global corporate workforce and may impact up to 15% of the corporate employees.
The company, famous for its Levi’s brand of jeans made from denim, had over 19,000 employees as of November. Levi’s 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 1-3% increase in revenue for the full fiscal year, falling short of the 4.7% 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 3% increase compared to last year. So, while recent profits are down, the total money the company made went up a bit.
