L Brands prepares to slash about 850 jobs or 15% of its corporate workforce. Credit: Samantha Marx.

Fashion retailer L Brands is preparing to slash around 15% of its home office workforce or about 850 jobs. 

The move is part of the company’s strategy to reduce costs to stabilise operation and generate annualised cost reductions. 

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Additionally, it is changing management structure and the labour model in Victoria’s Secret to reduce store selling costs.  

It will also implement its previously announced plan to shut 250 Victoria’s Secret stores this year and works to minimise operating losses in the UK and China. 

The company, which owns Victoria’s Secret, expects to save about $400m annually through these measures. 

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It also expects to save around $175m in fiscal 2020.  

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L Brands CEO Andrew Meslow said: “The Board and management remain committed to separating the Bath & Body Works and Victoria’s Secret businesses, as well as improving the profitability of the Victoria’s Secret business.  

“During the second quarter, we made meaningful progress toward these goals. Decisions relating to our workforce are incredibly difficult and not taken lightly, but these actions are necessary to best position our company for the long-term.  

“On behalf of the Board and management team, I’d like to extend our deepest appreciation to the impacted associates for their contributions and dedication over the years.” 

L Brands, which closed all of its stores in North America due to the crisis, has now reopened.   

It will present its second-quarter earnings results on 19 August. 

In May, Sycamore Partners cancelled its transaction agreement with L Brands due to the effects from the coronavirus pandemic.