CEO Stefan Larsson told employees the company is leaning in on what works best.
PVH Corp. is simplifying to focus on what’s working best — and cutting costs, which will lead to corporate layoffs.
“We expect to reduce our global workforce by about 4 percent, primarily in non-consumer-facing positions, which is around 12 percent of our office-based associates,” said Stefan Larsson, chief executive officer, in a memo sent to employees Thursday morning and obtained by WWD.
The parent company of Calvin Klein and Tommy Hilfiger started the fiscal year off with about 26,000 employees, putting the number job eliminated at 1,040.
“These are difficult decisions that we do not take lightly. Our colleagues who will be affected have helped build the progress we are proud of today,” Larsson said. “We are committed to treating everyone impacted with care and respect, and providing them with the support, resources and guidance they need to navigate the transition.”
Larsson has been working to transform PVH for some time with a multi-pronged plan to drive hero products with megawatt marketing and digital savvy while sharpening operations.
“We’ve made real progress together: we divested non-core businesses to fully focus on Calvin and Tommy, strengthened our relevance with younger consumers, built leading social followings and engagement, grown e-commerce and our key product franchises, and started to elevate the shopping experience,” said Larsson, adding that PVH has also “built stronger global capabilities.”
“And we’ve learned something important along the way,” he said. “When we lean in and drive improvements to the consumer offering all the way through to our doors and stores, it works.
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