As the pandemic stretches on, Ralph Lauren is the latest American brand to move forward with layoffs and simplify its structure.
The company said today it would reduce its global workforce by the end of fiscal 2021 — which is expected to result in annual pre-tax expense savings of approximately $180 million to $200 million starting in fiscal 2022. As it slims down, Ralph Lauren expects to incur estimated pre-tax charges of approximately $120 million to $160 million — mostly consisting of cash-related severance and benefit costs.
WWD reported that the company is laying off 15% of its workforce, or about 3,600 employees, across its roster.
As part of its Next Great Chapter Plan, Ralph Lauren said it is consolidating marketing and branding functions. It will establish a Consumer Intelligence and Experience (CIX) organization, with a focus on data and consumer insights. Ralph Lauren is also reorganizing its corporate merchandising teams. The company reiterated that it will emphasize sustainability and corporate citizenship across all roles.
“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 – including advancing our digital transformation and simplifying our team structures,” said president and CEO Patrice Louvet in a statement. “These steps will enable us to progress our brand elevation journey and deliver Ralph’s vision in today’s dynamic environment – inspiring our consumers around the world and creating value for all of our stakeholders.”
Ralph Lauren’s fiscal first-quarter revenues slid 66% to $487 million in the first quarter as digital gains failed to offset retail and wholesale declines.
The company reported a loss of $1.82 per diluted share, below the $1.72 forecast by Wall Street.