VF Corporation reduces workforce by 500 salaried staff members during corporate restructuring initiative.
In its latest game-changing strategy, VF Corp is slashing roughly 500 jobs worldwide, with the hardest hits being felt at some of its iconic brands. According to an email sent on Thursday, VF's new Reinvent strategy is aimed at enhancing operational efficiency, and while these decisions aren't easy, they'll provide the financial flexibility to invest in their brands and set them up for long-term growth. They're determined to handle this restructuring with utmost respect for everyone involved and expressed gratitude to those affected for their invaluable contributions.
The company is grappling with dwindling sales, particularly at the once-lucrative Vans skate brand. In its latest quarter, Vans sales took a massive 21% hit, while Timberland dipped 6.8% and Dickies fell 8%. The North Face, on the other hand, posted a robust 19% year-over-year growth, reaching an impressive $1.1 billion.
The company has yet to provide details on which brands are affected the most by these job losses. Last month, an activist investor lashed out at the previous leadership, demanding $300 million in expense cuts.
VF's Reinvent plan is all about cost reductions across their portfolio, with Vans consistently being singled out as needing a turnaround, along with brands like Altra. Vans has been a recurring topic in restructuring discussions, given its ongoing sales struggles, which were addressed during investor presentations. In fact, the headquarters of Dickies recently moved from Texas to California, leading to 125 layoffs, primarily impacting higher-level roles such as senior data scientists and pricing strategists.
Although The North Face and Timberland are part of the global reorganization of select commercial functions, the exact number of layoffs per brand remains undisclosed. Vans, however, has been a focal point in the restructuring efforts due to its ongoing sales struggles. Stay tuned for more updates on this developing story.
- The activist investor, especially focused on VF's business, demanded expense cuts worth $300 million from the company last month.
- VF Corp's Reinvent strategy, aimed at improving operational efficiency, includes cost reductions across its company, with a specific focus on the jobs and turnaround of Vans and brands like Altra.
- Vans, a once-lucrative brand experiencing dwindling sales, has been consistently singled out as needing a turnaround in VF's Reinvent plan.
- The company has yet to disclose the exact number of job losses for each brand, but Vans, due to its ongoing sales struggles, has been the main focus of the restructuring efforts.
- In its latest quarter, Vans sales took a massive 21% hit, while other brands such as Timberland and Dickies also posted declines, indicating a challenging period for several of VF's jobs and brands in the finance and industry sectors.
