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.
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.