Levi Strauss & Co. has outlined its plan to cut up to 15% of its global workforce as part of a restructuring initiative led by incoming CEO Michelle Gass. The job reductions, focused on corporate employees, are a key component of Levi’s global productivity program and are slated to occur in the first half of the year.
The decision reflects Levi’s response to both macroeconomic challenges and ongoing issues within its U.S. wholesale business. Gass, set to assume the CEO role later this month, emphasized the need for caution in light of uncertainties faced by the company over the past year.
Levi’s, with a worldwide workforce of 20,000 employees, intends to streamline its operating model, revamp business processes, and identify cost-saving opportunities while simplifying organizational processes. The layoffs, impacting approximately 500 to 700 people, are a significant element of the broader initiative known as Project FUEL, endorsed by the company’s board of directors.
Details regarding the specific departments or regions affected by the layoffs were not disclosed by Levi’s. Gass, who served as president during the transition period, has a vision of transforming Levi’s into a denim apparel lifestyle business.
The strategic initiatives outlined in Project FUEL played a role in Levi’s growth in the fourth quarter, positioning the company for long-term profitable growth, as highlighted in the earnings report. Despite challenges, the company is striving to create substantial long-term shareholder value under Gass’s leadership.
In a parallel development in the corporate realm, Microsoft recently announced significant job cuts in its gaming division, reflecting the broader trend of workforce adjustments seen in 2023. The corporate landscape continues to adapt as companies respond to economic shifts and strategic imperatives.
