Levi Strauss to Cut Up to 15% of Global Workforce Amid Restructuring

Incoming CEO Michelle Gass anticipates growth opportunities through international expansion and direct-to-consumer strategy.

Levi Strauss & Co. announced plans to cut between 10% and 15% of its global workforce in the first half of 2024, which could affect up to 15% of corporate employees.
The layoffs are part of a two-year restructuring plan, dubbed Project Fuel, aimed at cutting costs and simplifying operations, with restructuring charges estimated at between $110 million and $120 million in the first quarter.
Levi Strauss's net income fell 57% to $250 million in 2023 from 2022, with revenue stagnant at $6.2 billion, the same as fiscal 2022.
The company's direct-to-consumer (D2C) strategy, which was implemented in October, has not yielded the expected results, leading to the job cuts.
Michelle Gass, the incoming CEO, said the company anticipates 'significant growth opportunities ahead' by accelerating international growth and D2C, referring to selling denim through its own stores and website.