San Francisco-based jeans maker Levi Strauss & Co. (NYSE:LEVI) said it will cut 700 office jobs, or about 15% of its worldwide corporate workforce, as it deals with a sharp drop in sales due to the COVID-19 pandemic.
The company said the layoffs will save $100 million U.S. a year and won't affect workers at its stores or factories. Like other clothing companies, Levi's had to temporarily close its stores due to the pandemic. Many of the department stores that sell its jeans were also shut.
Levi Strauss & Co. said its second quarter revenue sank 62% to $497.5 million U.S. It reported a loss of $363.5 million U.S., after reporting a profit a year ago. Adjusted losses came to 48 cents per share, beating Wall Street expectations, according to Zacks Investment Research.
Levi’s also said most of its stores are now open and seeing sales at about 80% of where they were a year ago.
LEVI shares closed Tuesday at $13.83, down 58 cents, or 4%, from the day before.
