(CercleFinance.com) – Levi’s announced Thursday evening that it planned to reduce its workforce by 10% to 15% globally in order to gain productivity following a 2023 financial year described as ‘difficult’.
The American clothing and accessories group specifies that this decision should result in a restructuring charge of between 110 and 120 million in its first quarter accounts.
The San Francisco brand adds that additional provisions could be made in the future, depending on the progress of these cost reduction measures.
This announcement comes as Michelle Gass, the former boss of the American department store chain Kohl’s previously held by Starbucks and P&G, is due to soon take the role of general manager, replacing Chip Bergh, who is leaving.
In a press release, Levi’s indicates, however, that it managed to end the year 2023 on a favorable note, with turnover up 3% in published data, to $1.6 billion.
Its forecasts for 2024 are considered less encouraging, the group having declared that it expects a limited increase of 1% to 3% in its turnover this year.
Its earnings per share (EPS) should be between $1.15 and $1.25 for the full year, compared to $1.10 in 2022.
Following all these announcements, Levi’s shares were trending upwards early Friday morning on the New York Stock Exchange, gaining more than 2% after opening in the red.
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