Levi Strauss (LEVI) plans to cut 10% of its global workforce as the clothing retailer continues to restructure its business and warns of weak sales in the year ahead.
The job cuts will take place in the first half of the year, and could impact 15% of corporate staff, Levi’s said. The company had more than 19,000 employees at the end of November last year.
The cuts were announced as Levi Strauss reported its fourth-quarter financial results and gave weak forward guidance.
The company, most famous for its blue jeans, reported Q4 2023 earnings per share (EPS) of $0.44 U.S. compared to $0.43 U.S. that had been expected on Wall Street.
Revenue in the quarter amounted to $1.64 billion U.S. versus $1.66 billion U.S. that was forecast.
The company said it expects revenue to rise 1% to 3% for all of this year, which is lower than the 4.7% that Wall Street had anticipated.
Levi Strauss added that its inventories during Q4 of last year fell 9% from the previous year.
The stock of Levi Strauss has declined 11% in the past 12 months and currently trades at $15.75 U.S. per share.
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