Luxury apparel maker Canada Goose is set to slash 17 percent of its global corporate workforce following a “comprehensive review” of its organizational structure.
The company—which makes outerwear, apparel, footwear, and accessories—announced the cuts in a press release on March 26; however, officials stopped short of stating exactly how many employees would be impacted by the layoffs.
Canada Goose’s corporate headquarters had about 915 employees as of April 2023. The layoffs are believed to represent roughly 156 jobs.
Officials at the Toronto-based business said the job cuts are expected to bring “immediate” cost savings and simplify its organizational structure, allowing it to “accelerate decision-making and increase efficiencies across our operating platform.”
“Moving forward, cross-functional teams will be integrated, and business activities will be aligned to our go-forward strategy,” the company said.
Separately, CEO Dani Reiss confirmed the cuts in a note on LinkedIn.
“Today, we are realigning our teams to be fit for purpose for our next phase of growth with a focus on efficiency, and investing in key initiatives—brand, design, and best-in-class operations—that will continue to drive our business forward,” Mr. Reiss said.
“As a result, today we will say goodbye to approximately 17 percent of our global corporate workforce as we reset our teams to put us in the best position to scale,” he said.
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“Decisions like this are heartbreaking, but at the same time, I am confident this is necessary for the next phase of our business,” he said. “For those of you who are exiting the business, thank you for choosing to spend part of your career at Canada Goose. Your commitment, accomplishments, and impact will always be remembered.”Elsewhere on March 26, Canada Goose announced a number of changes to its management organizational structure.
Carrie Baker, president of Brand and Commercial, will “expand” her role to oversee Design in addition to her existing responsibilities, the luxury apparel maker said. Meanwhile, Chief Transformation Officer Daniel Binder will take on the additional responsibility of overseeing global stores.
Beth Clymer, president of Finance, Strategy, and Administration will add operations to her responsibilities after John Moran, the company’s former chief operating officer, departed Canada Goose earlier this month.
The layoffs come shortly after Canada Goose reported its total revenues grew 6 percent to $609.9 million (US$448.4 million) in the three months ended Dec. 3, compared to the year prior.
However, those results still fell short of analysts’ expectations, with the company also noting a 14 percent slump in quarterly revenue from North America, suggesting demand for luxury clothing in the United States may be dwindling.
The company is expected to provide full results for the quarter and year ended March 31, 2024, next month.
Shares of Canada Goose were down nearly 7 percent after closing on March 26, having already slumped roughly 34 percent over the past 12 months.
The layoffs come as multiple retailers, including Nike and denim maker Levi Strauss & Co., have announced cuts to their workforce in recent months amid a slowdown in consumer demand as shoppers pull back on spending for discretionary items.
