Consumer
Levi Strauss to Cut 15% of Corporate Jobs; Guidance Misses Estimates
- Restructuring plan includes charges of as much as $120 million
- New CEO Michelle Gass assumes her role starting Jan. 29
The job cuts will cause restructuring charges of $110 million to $120 million in the first quarter, the company said in its earnings statement.
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Levi Strauss & Co. slumped after announcing it will cut as much as 15% of its corporate workforce to boost efficiency. The company also gave an outlook for 2024 sales and profit that fell short of Wall Street’s expectations.
Levi, which is prioritizing direct-to-consumer sales over wholesalers, said a new, multiyear “productivity initiative” will include cost-cutting and simplify some operations. The job cuts will cause restructuring charges of $110 million to $120 million in the first quarter, the company said in its earnings statement.