Levi Strauss & Co has unveiled plans to cut jobs in its corporate division after reporting a fall in net income during 2023.
Between 10% and 15% of the denim giant’s global corporate workforce will be cut under the move, which will aim to reduce costs and simplify organisation across the business.
This will be part of a two-year initiative, Levi’s said in Thursday’s full-year results announcement, with the cuts representing the initial phase of the plan.
Levi’s announced the reductions as the firm reported a fall in adjusted net income by more than a quarter to US$441 million over the year.
Adjusted margins declined from 11.6% to 9% meanwhile, as net revenue was flat at US$6.2 billion.
Adjusted diluted earnings per share came in at US$1.10 for the year, Levi’s added, compared to US$1.50 in 2022.
“Looking forward, we are focused on margin execution supported by gross margin expansion and by our global productivity initiative,” chief financial officer Harmit Singh said.
“[This] gives us clear line of sight to significant annual cost savings.”
Levi’s shares dipped 1.6% in pre-market trading.