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Levi Strauss & Co, one of the most famous fashion brands in the world, has decided to lay off more than a hundred employees at its California office.
The company, known for its famous blue jeans, announced that 146 employees will be laid off from its headquarters in San Francisco.
The California headcount cuts are unlikely to be the last, as the company previously announced that broader layoffs were on the horizon.
Levi Strauss CEO says he regrets people don't get out soon enough
In this illustration, blue Levi's 501 jeans from American clothing manufacturer Levi Strauss are on sale. ((Photo by Sean Gallup/Getty Images)/Getty Images)
Levi's previously predicted it would cut between 10% and 15% of its global workforce in the first half of 2024.
The cuts are part of the company's global productivity initiative and are expected to take place during the first half of the year under the leadership of new CEO Michel Gass.
The company is trying to tighten its belt quickly as it faces macroeconomic challenges and ongoing issues in the U.S. wholesale trade.
LEVI's plans to cut up to 15% of its global workforce
There is a sign in front of the Levi Strauss & Co. headquarters. In San Francisco, California showing the company logo. (Justin Sullivan/Getty Images/Getty Images)
“There was a lot of volatility last year, some of it within our control and some of it outside of it. So we're taking a cautious approach as we look forward,” Gass said on an earnings call with analysts.
The company employs 20,000 employees worldwide, about 5,000 of whom are corporate employees. This means that the layoffs will affect between 500 and 700 people.
The company did not confirm which departments or regions would be affected.
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A side view of Levi's Stadium, home of the San Francisco 49ers football team, viewed through trees across the parking lot, in Silicon Valley, Santa Clara, California. ((Photo by Smith Group/Gado/Getty Images)/Getty Images)
At the same time that termination expectations were being announced worldwide, Levi Strauss & Co. agreed to… Also on a $170 million deal to keep the company's name at the San Francisco 49ers' stadium in Santa Clara. The agreement extends until 2043.
Gass is set to take over Levi's in November 2022 and has assumed the role of president during the transition. During that time, she worked closely with the company's executive leadership team and current CEO Chip Bergh.
Fox Business' Daniela Genovese contributed to this report.
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