Levi Strauss & Co. announced on Thursday that it will be cutting its worldwide corporate workforce by 10% to 15% in the first half of the year as part of a two-year reorganization plan to reduce expenses and streamline operations.
The annual report that the company filed with securities regulators states that as of the end of November, there were approximately 19,100 employees employed by the company.
In the fiscal quarter ending November 26th, Levi’s reported a 3% increase in net revenue to $1.64 billion, the company said Thursday. According to FactSet, analysts had anticipated $1.66 billion.
Based in San Francisco Levi’s announced that the restructuring is projected to result in net cost savings of $100 million in the current fiscal year. It is projected that charges of $110 million to $120 million will be recorded in the first quarter, with the possibility of additional restructuring charges in the future.
The announcement is made at the same time that the company, which has been led by CEO Chip Bergh since 2011, is set to transition from his leadership on January 29th to that of Michelle Gass, who departed from her position as CEO at Kohl’s in January 2023 to become president of Levi’s. Levi Strauss announced that until his retirement at the end of April, Bergh will continue in his role as executive vice chair.
On the same day that it revealed plans to lay off workers, Levi’s also revealed a naming rights extension for Levi’s Stadium, where the 49ers play, that would extend the deal for another decade. The board of directors of the Santa Clara Stadium Authority is expected to approve the $170 million deal on Tuesday. The naming rights to the stadium will be transferred to Levi’s for the 2043 NFL season.
