Canada Goose said Tuesday that it will cut about 17% of its corporate workforce, following a string of other retailers that have laid off employees this year as consumers continue to pull back on discretionary spending.
It is not clear how many employees will be laid off. The cuts will affect staff at Canada Goose’s corporate headquarters, which had about 915 employees as of April 2023, according to a securities filing. Between April 2021 and April 2023, Canada Goose nearly doubled the number of employees at its corporate head offices from 544 to 915 to support its “continued growth,” the filing says.
In a statement Tuesday, CEO Dani Reiss said, “Today, we are realigning our teams to ensure that corporate resources are fit for purpose to fuel our next phase of growth across geographies, categories, and channels.”
“We are focused on achieving efficiency and margin expansion, while investing in key initiatives — brand, design and best-in-class operations — that will powerfully position our iconic performance luxury brand to deliver long-term growth,” Reiss said.
The cuts, part of the company’s ongoing “Transformation Program,” come after what it called a “comprehensive review” of its organizational structure and the roles it needs to reach its goals. It expects the cuts will bring “immediate” cost savings and simplify its workforce, allowing it to make decisions more quickly and become more efficient.
Shares of Canada Goose closed about 7% lower.
In the three months that ended Dec. 31, Canada Goose saw sales grow 6% compared to the year-ago period, but the results fell short of analysts’ expectations, according to LSEG, formerly known as Refinitiv. When releasing its holiday-quarter results, Canada Goose noted that its wholesale revenues were particularly weak, an ongoing dynamic for the company that many other retailers have felt.
Several retailers, including Under Armour and Nike, have said recently that wholesale orders have been sluggish as department stores look to keep inventories in check and contend with a slowdown in demand.
The layoffs at Canada Goose come after Nike, Macy’s, Wayfair, Hasbro and Etsy all announced widespread layoffs over the past few months. In many cases, the companies were looking to focus on what they can control by becoming more efficient and focusing on profits, even as shoppers pull back on discretionary items such as clothes, shoes and toys.
Source: CNBC
