VF Corporation is laying off 300 employees and eliminating 300 open positions, according to an internal email sent yesterday to employees from company president and CEO Steve Rendle.
A copy of the email was first obtained by Denver Business Journal. OBJ confirmed its authenticity with VF.
The layoffs and position cuts are meant “to align our people and capabilities with our highest strategic priorities,” Rendle wrote in the email.
“I recognize that the past few years have been intense,” he wrote. “And while the environment will likely continue to be marked by volatility, we have strong momentum in the majority of our businesses. At the same time, we’re working to improve those areas of the business that need attention.”
The email did not detail which departments or brands will be impacted by the reductions.
VF reported an increase in total income to $http://c9d75o88s1kx0pb9har4mj0p54.hop.clickbank.net billion for Q1 FY 2023. The North Face saw an increase of $500 million, while Vans revenue declined almost $1 billion.
Supply chain issues and the strength of the http://c9d75o88s1kx0pb9har4mj0p54.hop.clickbank.net dollar were cited for continued lagging sales in China, a major market for Vans. In March, Kevin Bailey was appointed to the helm of Vans and charged with bringing back “brand heat,” according to VF.
VF reported having 35,000 employees worldwide at the end of its fiscal year 2022 report released in July. It owns 12 brands including The North Face, Smartwool, Timberland, and Vans. In that report the company reported that global revenue increased 28 percent to $http://c9d75o88s1kx0pb9har4mj0p54.hop.clickbank.net billion.
For the first quarter of 2023, the company announced a net loss of $56 million. Rendle said that inflation and decreased consumer spending were the reason for the downturn.
The elimination of 600 positions is hardly VF Corp.’s most significant workforce reduction. The company laid off 13,000 employees in 2006.
VF Corp. (VFC-NYSE) stock went into August at $http://c9d75o88s1kx0pb9har4mj0p54.hop.clickbank.net a share, and ended the month at $http://c9d75o88s1kx0pb9har4mj0p54.hop.clickbank.net
The post VF Corporation Announces Layoffs, Slashing Staff by 600 appeared first on Outside Online.