The Biden economy is taking another hit as Levi Strauss is set to cut 10% of its workforce. Despite having decent sales in 2023, the company expect 2024 to be a lean year.
Levi’s, based in San Francisco, will likely trim its corporate office workforce. Levi’s is still popular enough to get shelf space in most retailers such as Macy’s or Target. CNBC says:
Levi Strauss will lay off at least 10% of its global corporate workforce as part of a restructuring, the apparel retailer said Thursday as it said it expected weaker sales this year.
The job cuts will take place in the first half of the year, and could affect up to 15% of corporate employees, Levi’s said. The company had more than 19,000 employees as of November, but it is unclear how much of that workforce is in corporate offices.
Levi’s used to dominate the denim market during most of its existence. Its increasingly turn against gun rights has thrusted it in the middle of the culture war. Market Watch continuesL
“We have a strong pipeline of newness and innovation launching this year to fuel consumer demand,” Gass said in Levi Strauss’s fourth-quarter earnings release on Thursday. “And I am confident in the significant growth opportunities ahead for this company — including accelerating international growth, becoming a denim-apparel lifestyle business, and leading with” Levi’s direct-to-consumer business.
Still, shares fell 2.5% after hours, after management forecast full-year adjusted per-share profit that was below Wall Street’s expectations.
As younger generations move away from Levi’s as the default denim brand, the company will have to innovate in its brand perception.
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