Levi Strauss to cut hundreds of jobs amid revenue fall
American jeans maker Levi Strauss will cut about seven hundred jobs. That equates to about 15 percent of the workforce. With the intervention, the company wants to save costs to find its way back up after the corona crisis.
The trousers and apparel business saw revenues plummet 62 percent to $ 498 million in its past quarter. This was mainly due to the many store closings in the past period. Partly because of this, a loss of $ 364 million was recorded over the three months to May 24, from $ 29 million a year earlier.
Levi Strauss is working with a broken financial year, which is why the quarters of the company do not equal those of a calendar year. The outlook for the full fiscal year does not look very bright. The company takes into account even more corona damage, which can also lead to additional interventions.
However, sales have been improving somewhat lately. Because stores are allowed to open again, sales are picking up again. Many trousers are also sold online.