Ralph Lauren to cut 15 per cent of global workforce
Fashion magnate Ralph Lauren has said it will cut around 15 per cent of its global workforce, as it seeks to recover costs and streamlines its offering to focus more on digital channels.
The cuts, which will take place by the end of this fiscal year, could affect up to 3,700 jobs.
The layoffs could result in annual pre-tax savings of between $180m and $200m, the company said.
Luxury retailers and high-end designers have been particularly hard hit by the coronavirus pandemic, as travel restrictions put a stop to a lucrative chunk of their revenue.
However e-commerce sales have comparatively boomed as a result, prompting Ralph Lauren to invest in its online shopping division.
The company said it will also move some human resource and planning systems to online cloud platforms, and streamline reporting lines.
“The changes happening in the world around us have accelerated the shifts we saw pre-Covid, and we are fast-tracking some of our plans to match them,” chief executive Patrice Louvet said.
Ralph Lauren expects to incur one-time pre-tax charges of about $120m to $160m in fiscal 2021, it added.
Ralph Lauren shares were up 1.6 per cent in early trading as markets opened on Wall Street this afternoon.