VF Corp. announced Tuesday in an internal e-mail that it has eliminated about 600 office-based positions at the company, including 300 current workers and 300 open positions, according to the Denver Business Journal.
In a letter to employees obtained by the Denver Business Journal, Steve Rendle, VF’s president and CEO, described the move as necessary “to align our people and capabilities with our highest strategic priorities.”
VF employs about 35,000 workers worldwide, of which 26,000 are in corporate roles. The layoffs represent about 1.7 percent of its workforce.
“I recognize that the past few years have been intense. And while the environment will likely continue to be marked by volatility, we have strong momentum in the majority of our businesses,” Rendle wrote. “At the same time, we’re working to improve those areas of the business that need attention.”
As in recent analyst calls, Rendle emphasized in his letter to employees that he believes VF has the correct long-term strategy in place as it transforms into a more digital, direct-to-consumer company to meet the needs of customers. In the short term, however, VF said it has to take “a strategic and thoughtful approach to new roles going forward” as it “reaccesses strategic priorities and the level of capabilities required to support them.”
“Our overriding goal is to drive consistent growth across our full family of brands,” he wrote. “Through clear and focused strategies, the passion and capabilities of our people and the guidance provided by capable leaders, we will drive growth and chart the next chapter for VF.”
A source told the Denver Business Journal that the layoffs reflected “no disproportionate impact in any one location, including the headquarters in Denver.”
In its first quarter ended July 2, VF reported sales on a currency-neutral basis rose 7 percent in its fiscal first quarter ended July 2 as 37 percent growth at The North Face offsetting a 4 percent slide at Vans. Earnings and sales were below analyst targets, and VF lowered its guidance for the year to reflect ongoing negative impacts from foreign currency fluctuations.
VF Corp.’s other brands include Dickies, Altra, Eastpak, Icebreaker JanSport, Kipling, Napapijri, Smartwool and Supreme.
Photo courtesy VF Corp.
