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Ralph Lauren to cut jobs as retailer speeds shift to e-commerce
[PARIS] Ralph Lauren said it's trimming its workforce as the preppy apparel maker changes its structure and accelerates plans to shift to more online sales.
The cuts are expected to be made by the end of its fiscal year, which ends in March, and the company didn't say how many jobs will be eliminated. This will result in pretax charges of US$120 million to US$160 million. Annual savings, starting in the company's next fiscal year, are seen reaching as much as US$200 million.
The restructuring comes as Ralph Lauren struggles to cope with economic fallout from the coronavirus pandemic like most clothing retailers, with sales dwindling over the past two quarters. The company has declined to give guidance for its performance amid upheaval in consumer spending.
"The changes happening in the world around us have accelerated the shifts we saw pre-Covid, and we are fast-tracking some of our plans to match them - including advancing our digital transformation and simplifying our team structures," said Patrice Louvet, President and chief executive officer.
In August,Mr Louvet said management was undertaking a review of its organization, including how it structures its teams and its corporate office real estate footprint.