The American blue jeans brand Levi Strauss is cutting 700 jobs, or around 15% of its staff, while it is struggling with the slowdown caused by the pandemic.
The company, hit by a 62% drop in sales in its last quarter, said the cuts were necessary “given the uncertainties” of the impact of the virus.
However, Levi’s buyers return as the stores reopen.
But he warned that he expected sales to be “significantly affected” until the end of this year.
“There are still a lot of uncertainties,” said Levi chief executive Chip Bergh.
Levi’s, which was re-listed on the U.S. stock exchange last year, has seen sales increase in recent years as jeans have regained popularity and the fashion for casual wear has faded.
- Levi’s Ride – The denim trend of the 1980s returns to the stock market
- Levi Strauss is worth $ 6.5 billion in stock market return
But these trends were reversed in the foreclosure months, as shoppers cut spending on clothing, especially pants.
Levi’s reported a loss of $ 364 million (£ 290 million) in the three months to May 24, compared to profit of $ 29 million for the same period last year.
Revenue fell to $ 498 million from $ 1.3 billion in the same period in 2019.
Over 90% of the company’s stores have now reopened and sales have been better than expected, said Bergh. He also saw online sales increase.
Levi’s said it hoped to save about $ 100 million from office layoffs – one of several steps the company has taken in response to the slowing pandemic.
The retailer said the reductions are happening worldwide: “Final plans will vary by country and are subject to applicable consultation processes. ”
Levi’s said it employed around 15,800 people at the end of November, including 8,500 in the retail trade and 1,800 in the manufacturing sector.