Business News

Canada Goose to cut 17% of its corporate workforce following series of retail layoffs

Canada Goose parkas are on display at a store in Richmond Hill, Ontario.

Chris So | Toronto Star | Getty Images

Canada goose said Tuesday it would cut about 17% of its corporate workforce, following a series of other retailers that have dismissed employees this year as consumers continue to cut back on discretionary spending.

It is unclear how many employees will be laid off. The reductions will affect staff at Canada Goose’s head office, which had approximately 915 employees as of April 2023, according to a securities filing. Between April 2021 and April 2023, Canada Goose nearly doubled the number of employees at its headquarters, from 544 to 915 to support its “continued growth,” the filing said.

In a statement released Tuesday, CEO Dani Reiss said: “Today, we are realigning our teams to ensure the company’s resources are fit for purpose to fuel our next phase of growth across geographies, categories and canals. »

“We are focused on efficiency and margin expansion, while investing in key initiatives – best-in-class brand, design and operations – that will powerfully position our iconic, high-performance luxury brand to drive long-term growth.” , Reiss said.

The cuts, part of the company’s ongoing “transformation programme”, come after what it calls a “comprehensive review” of its organizational structure and the roles it needs to achieve its goals. It expects the reductions to result in “immediate” savings and simplify its workforce, allowing it to make decisions faster and become more efficient.

Canada Goose shares closed down about 7%.

In the three months ended Dec. 31, Canada Goose saw sales rise 6% from the year-ago period, but results fell short of analysts’ expectations, according to LSEG, formerly known as the name Refinitiv. When releasing its holiday quarter results, Canada Goose noted that its wholesale revenue was particularly weak, a continued dynamic for the company that many other retailers have felt.

Several retailers, including Under protection And Nikerecently said bulk orders are slow as department stores seek to control inventory and cope with slowing demand.

Canada Goose layoffs come after Nike, Macy’s, Wayfair, Hasbro And Etsy everything is announced widespread layoffs over the last few months. In many cases, companies sought to focus on what they could control by becoming more efficient and focusing on profits, even as shoppers turned away from discretionary items such as clothing, shoes and toys .

Don’t miss these stories from CNBC PRO:

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button