Levi's to cut its global workforce by 15 percent

NEW YORK

Denim giant Levi Strauss & Co. has said that it's slashing its global corporate workforce by 10 percent to 15 percent in the first half of the year as part of a two-year restructuring plan that seeks to cut costs and simplify its operations.

The company employed about 19,100 people as of the end of November. 

San Francisco-based Levi's said the restructuring is expected to generate net cost savings of $100 million in the current fiscal year.

It estimates it will book charges of $110 million to $120 million in the first quarter and said there could be more restructuring charges ahead.

Levi's announced on Jan. 25 that its net revenue was up 3 percent to $1.64 billion in the fourth quarter that ended Nov. 26. That came below analysts' expectations for $1.66 billion, according to FactSet.

The announcement comes as the company, which has been under the leadership of CEO Chip Bergh since 2011, will be handing over its reins on Jan. 29 to Michelle Gass, who left her CEO role at Kohl’s to become president of Levi’s in January 2023.

Bergh will stay on as executive vice chair until he retires in late April, Levi Strauss said.

Levi's announced the layoffs the same day it unveiled a proposed 10-year extension to the naming rights for Levi's Stadium, home of the San Francisco 49ers. The deal is worth a combined $170 million.

It will give Levi's the stadium's naming rights through the 2043 NFL season.