Levi Strauss to Cut Up to 15% of Employees After Predicting Weak 2024 Outlook The company announced its fiscal Q4 2023 earnings on Thursday.

By Emily Rella

entrepreneur daily

American staple outfitter Levi Strauss announced on Thursday that it will terminate up to 15% of its global workforce in the first half of this year due to a restructuring plan.

Between 10% and 15% of corporate employees could be affected by the cuts but the company did not specify how many employees specifically were at risk of termination, though it noted that the company has roughly 19,000 employees in retail and corporate globally.

The news comes on the heels of a week sales outlook prediction from the denim company upon reporting fiscal Q4 2023 earnings on Thursday, where the company reported that it expected net revenue to grow just 1% to 3% year over year in 2024.

Related: Woman Goes Viral For Live-Recording Her Job Termination

This was much lower than Wall Street's prediction of 4.7% growth year over fiscal year.

Net revenue for all of fiscal 2023 was "flat" as compared to fiscal 2022.

Sweeping changes are also expected as President and CEO of Levi Strauss & Co. Chip Bergh steps down and is succeeded by incoming President and CEO Michelle Gass, though it has not yet been specified when exactly that will ocurr in the weeks ahead.

"We have a strong pipeline of newness and innovation launching this year to fuel consumer demand. And I am confident in the significant growth opportunities ahead for this company including accelerating international growth, becoming a denim apparel lifestyle business, and leading with DTC," Gass said in a company release. "The success of these strategic initiatives drove our growth in the fourth quarter and position us to create outsized long-term shareholder value in the years ahead."

The company is also planning to sunset its body-positive Denizen brand and redirect focus to athleisure categories, such as its Beyond Yoga brand, which saw a 14% quarterly increase.

Related: How Do Companies Decide Who to Lay Off?

"There's been a lot of volatility this past year," Gass said in the earnings call. "We are taking a cautious approach as we look forward."

Levi Strauss & Co. was down just over 12% year over year as of Friday morning.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Business News

He 'Accidentally Discovered' a Semi-Passive Side Hustle in College — Now He's on Track to Make More Than $500,000 This Year

When a lack of funding put a stop to Zach Downey's pizza vending machines, he stumbled upon another lucrative idea.

Business News

Apple Faces Class Action Lawsuit Over iCloud's Alleged 'Enormous Structural Advantage'

The lawsuit asserts that cloud storage on iPhones would be "better, safer, cheaper, and more prevalent" without Apple's policies.

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.


The Rules of SEO Are Changing — Here Are 5 Powerful Strategies to Help You Rank in 2024

Do you need help to rank well on Google due to new algorithm updates? Discover five SEO strategies that work in 2024.

Business News

Here's How Much Amazon's Typical Customer Makes, Plus How Much They Spend on the Platform Per Year

A retail snapshot from data company Numerator paints a picture of who shops at Amazon and where they usually spend their money.