Jeans brand Levi's axes 800 jobs | RetailDetail

Jeans brand Levi's axes 800 jobs

Jeans brand Levi's axes 800 jobs

Jeans manufacturer Levi Strauss will axe 800 jobs worldwide in the next 12 to 18 months, which represents 5 % of all employees. It felt obligated to do this because of declining jeans sales and dwindling profits.

Save up to 200 million dollars

The renowned jeans manufacturer, founded 160 years ago in San Francisco, has announced a large cost-cutting program to save up 200 million dollars (145 million euro) in the next year and a half.

 

Mostly managers and office personnel will have to leave, as one in 5 will lose their jobs. Employees in one of the 2,800 Levi Strauss stores all across the world and in factories will be spared. In total, Levi's employs 16,000 people in 110 countries.

 

Declining sales

All American, Asian and European branches will have to trim down, not surprisingly three regions with declining sales, according to Levi's. The company has failed to produce additional details, but staff will be informed shortly.

 

2013 turnover growth for the American jeans giant fell to 2 % with net profit at 229 million dollars (165 million euro), but the biggest letdown was when Levi Strauss informed everyone last month that fourth quarter profits dropped 68 % because of weak European sales and increased competition which has pressurized store prices and profit margins.

Questions or comments? Please feel free to contact the editors


Multinationals fail their healthy food claims

24/05/2018

Food multinationals are not doing enough to make their products more healthy, according to Access to Nutrition Foundation. NestléUnilever and Danone are top of the class.

Ahold Delhaize launches digital lab in the United States

22/05/2018

Ahold Delhaize’s American division will found a new company focused on digital innovation: Peapod Digital Labs will become a lab for new digital, eCommerce and personalization strategies. 

Carrefour forced to shut down hundreds of Dia stores

22/05/2018

Carrefour has not found a buyer for hundreds of its former Dia stores in France yet. That may force nearly 230 stores to shut down.

Carrefour and Tencent launch high-tech store in Shanghai

22/05/2018

The recently launched ‘Le Marché’ store formula, a first collaboration between Carrefour and Tencent, allows customers to pay with face recognition at unmanned checkouts.

Hoegaarden moves part of production to Vietnam and China

18/05/2018

Hoegaarden experiences strong growth in Asia, but is losing ground in Europe. That is why AB InBev will move part of the production to China and Vietnam: the brewery in Hoegaarden will lower cut its production days by 2 a week.

Holland & Barrett wants vegan stores

17/05/2018

British health chain Holland & Barrett (previously known in the Benelux as Essenza) plans to open completely vegan stores, a trend the chain needs to follow according to CEO Peter Aldis.