Levi Strauss to cut off 15% workforce this year

By Ovunc Kutlu

ISTANBUL (AA) - American clothing company Levi Strauss, known as Levi's, is planning to cut up to 15% of its workforce this year.

"The first phase of the global productivity initiative is expected to occur in the first half of 2024 and is expected to include a 10% to 15% reduction of our global corporate workforce," the firm said in its financial results statement released Thursday.

The company said it expects to have estimated restructuring charges of $110 to $120 million in the first quarter as a result of the job cuts, while additional restructuring charges may be incurred as it progresses further.

"Looking forward, we are focused on margin execution supported by gross margin expansion and by our global productivity initiative, which gives us clear line of sight to significant annual cost savings," Chief Financial and Growth Officer Harmit Singh said in the statement.

The company saw its net income decline 16% to $127 million for the three months ended Nov. 26, 2023, from $151 million the same period of 2022.

Annually, net income decreased 56% to $250 million from $569 million, during that period.