SAN FRANCISCO (AP) — Levi Strauss & Co. will eliminate
about 800 jobs, almost 20 percent of its non-retail and
non-manufacturing employees, over the next 12 to 18 months.
The
privately held company said that its restructuring plan will help it
become more competitive, lower costs and improve its financial health.
Last
month, the company said that its fourth-quarter gross profit weakened
because it had to increase markdowns due to a slower holiday season and
softness in its Levi’s juniors and misses businesses.
Levi Strauss
said Wednesday that the cuts will primarily be management positions
across the world. It is also getting rid of what it considers duplicate
roles. Levi Strauss, which also makes the Dockers and Denizen brands,
said that final plans will vary by country, and estimates for headcount
and the timing of the job cuts may change.
The company’s products are sold in about 2,800 retail stores and shop-in-shops globally, as well as
online.
The
job cuts are part of the first phase of a restructuring plan that is
expected to result in about $75 million to $100 million in annual
savings, before accounting charges related to those cuts. Those charges,
which will total about $65 million, will mostly be recorded in the
first quarter.
The entire restructuring plan is expected to deliver $175 million to $200 million a year in savings, the
company said.
Levi Strauss, which is based in San Francisco, said that additional charges will be recorded in the
future.
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