Denim giant Levi Strauss & Co will cut around 800 jobs in phases over the next 12 to 18 months, as part of a new restructuring programme, which will deliver up to US$200m in company’s annual savings with first phase expected to deliver around $75-$100m . The global productivity initiative will be executed with the first phase comprising an elimination of 20% of the group’s non-retail and non-manufacturing employees.
The cuts, the company said, reflect a reduction of management layers, an increase in spans of control, the removal of duplicative roles, a regrouping of country clusters and other structural changes. Final plans will vary by country, and final numbers, timing and charges are subject to consultative processes.
“Today’s announcement reinforces our ongoing commitment to improving the structural economics of the business and further strengthening the financial health of the company,” said Chip Bergh, LS&Co president and CEO.
