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Levi Strauss & Co., one of the most famous fashion brands in the world, lays off more than one hundred employees at its California office.
The company, known for its iconic blue jeans, announced that 146 employees would be laid off from its San Francisco headquarters.
The California job cuts are unlikely to be the last: The company previously announced that more widespread layoffs are on the horizon.
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In this photo illustration, blue Levi’s 501 jeans from American clothing manufacturer Levi Strauss are seen for sale. ((Photo by Sean Gallup/Getty Images) / Getty Images)
Levi has previously speculated that it will cut 10% to 15% of its global workforce in the first half of 2024.
The cuts are part of the company’s global productivity initiative and are expected to take place during the first half of the year under incoming CEO Michelle Gass.
The company is trying to quickly tighten its belt as it faces macroeconomic challenges and ongoing issues within its U.S. wholesale business.
Levi’s will cut up to 15% of its global workforce
There is a sign posted in front of the Levi Strauss & Co. headquarters in San Francisco, California, displaying the company’s logo. (Justin Sullivan/Getty Images/Getty Images)
“There has been a lot of volatility this past year, some within our control, some external. That’s why we’re taking a cautious approach as we look ahead,” Gass said on an earnings conference call with analysts.
The company has 20,000 employees worldwide, of which around 5,000 are corporate employees. This means that the layoffs will affect between 500 and 700 people.
The company has not confirmed which departments or regions will be affected.
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Side view of Levi’s Stadium, home of the San Francisco 49ers football team, seen through the trees across a parking lot, in Silicon Valley, Santa Clara, California. ((Photo by Smith Collection/Gado/Getty Images) / Getty Images)
At the same time as expectations of layoffs around the world were announced, Levi Strauss & Co. also agreed to a $170 million deal to keep the company’s name on the San Francisco 49ers’ stadium in Santa Clara. The agreement extends until 2043.
Gass was tapped to take over Levi’s in November 2022 and assumed the role of president during the transition process. During that time, he worked closely with the company’s executive leadership team and current CEO Chip Bergh.
Fox Business’ Daniella Genovese contributed to this report.