VF Corporation is cutting 600 office-based roles, which will impact 300 current workers and 300 open roles, the company confirmed.
Steve Rendle, the president and CEO of the company that owns Vans, The North Face and Timberland, announced the layoffs in a letter to employees, according to a report from Denver Business Journal. In the letter, Rendle reportedly said the cuts were meant “to align our people and capabilities with our highest strategic priorities.”
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VF declined to comment to FN but confirmed the accuracy of Denver Business Journal’s report.
The news comes shortly after VF Corp. reported a net loss of $56 million in the first quarter of 2023 in July, amid a softer consumer environment and inflationary pressures. The Denver-based company said in a statement that revenue in the quarter was driven by increases in the EMEA and Americas regions partially offset by a decline in the APAC region primarily due to COVID lockdowns in China. The North Face was the company’s top performing label, increasing 31% in the quarter to $481.1 million.
In a statement in July, Rendle said the results were due to the softer consumer environment and inflationary pressures.
VF Corp. isn’t the only industry player to undergo layoffs amid a tumultuous economic environment. As the U.S. economy suffers, layoffs and hiring freezes have ripped through various companies including Walmart, Allbirds, StockX, ThredUp and more.
The total number of separations in July, which includes quits, layoffs and discharges, was 5.9 million, at a rate of 3.9%, marking little change from the month before. Layoffs and discharges totaled 1.4 million at an unchanged rate of 0.9%.
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