North Face owner VF Corp. has recently announced its plan to lay off approximately 500 salaried employees as part of a new transformation plan. The company, based in Denver, is looking to cut costs and reduce debt amidst challenges in the North American market, particularly with its struggling Vans brand. In addition to these challenges, VF Corp. has also faced pressure from activist investor groups, prompting calls to divest certain brands and pay down debt.
VF Corp. is the owner of several popular brands, including Timberland, Dickies, JanSport, and Supreme. In October, the company withdrew its fiscal year guidance and made leadership changes at Vans. Alongside these changes, VF Corp. introduced a transformation plan with a goal of achieving $300 million in cost savings.
As of April, VF Corp. employed a total of 33,000 individuals, with 60% working full time. While the decision to lay off employees is a difficult one, the company believes it will provide necessary financial flexibility to invest in its brands and position itself for long-term growth. According to a company spokesperson, these measures are part of VF Corp.’s strategy to better position itself for future success.
The announcement of the layoffs comes at a time when VF Corp.’s shares have declined approximately 40% since the beginning of the year. In contrast, the Russell 3000 Index has experienced a gain of 17% during the same period. Now, the company will focus on implementing its transformation plan to address the challenges it faces and set the stage for a more robust future.
Useful links:
1. VF Corp. Official Website
2. VF Corp. News on Reuters
