Levi’s plans to cut its global workforce by up to 15% as part of a two-year restructuring plan

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NEW YORK (AP) — Denim giant Levi Strauss & Co. said Thursday it will reduce its global corporate workforce by 10% to 15% in the first half of the year as part of a two-year restructuring plan that seeks to cut costs and streamline its operations.

The company employed about 19,100 people as of the end of November, according to its annual report filed with securities regulators.

The restructuring is expected to result in net cost savings of $100 million in the current fiscal year, San Francisco-based Levi’s said. It estimates it will book charges of $110 million to $120 million in the first quarter, and said there could be more restructuring charges to come.

Levi’s announced Thursday that its net revenue rose 3% to $1.64 billion in the fourth quarter ended Nov. 26. That came in below analysts’ expectations of $1.66 billion, according to FactSet.

The announcement comes as the company, which has been under the leadership of CEO Chip Berg since 2011, The reins will be handed over on Jan. 29 to Michelle Gass, who is leaving her CEO position at Kohl’s to become president of Levi’s in January 2023. Berg will remain as executive vice president until his retirement in late April, Levi Strauss said.

Levi’s announced the layoffs on the same day it unveiled a proposed 10-year extension of naming rights to Levi’s Stadium, home of the San Francisco 49ers. The deal has a combined value of $170 million and is subject to approval by the Santa Clara Stadium Authority Board of Directors, which is expected to be granted Tuesday. Levi’s will grant naming rights to the stadium during the 2043 NFL season.

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