US fashion and lifestyle company PVH has revealed its plan to reduce its North America office workforce by around 450 positions or 12%.
The reductions will be across all three brand businesses and corporate functions.
PVH’s brand portfolio includes CALVIN KLEIN, TOMMY HILFIGER, Van Heusen, IZOD, ARROW, Warner’s, Olga and Geoffrey Beene brands, as well as the digital-centric True&Co intimates brand.
The move is part of the company’s plans to streamline its North American operations and to adapt to the changing retail landscape.
Under this restructuring, the company plans to shut its 162 Heritage Brands Retail outlet stores. These stores are expected to operate until mid-2021.
It is expected to generate an annual cost savings of approximately $8m.
PVH chairman and CEO Manny Chirico said: “The structural changes occurring in the North American retail landscape have required us to take a hard look at our North American operations and identify where we can optimise costs across our business model.
“As a result, we are making the incredibly difficult decisions to close our Heritage Brands Retail business and eliminate a significant number of positions throughout our North American organisation to align with the lower revenue base.
“We did not take these decisions lightly, as our Heritage Brands Retail business is our oldest retail business yet no longer met appropriate return metrics.”
In January, PVH Corp agreed to divest its Speedo North America business to Speedo International’s parent company Pentland in a deal valued at $170m.
It employs more than 40,000 associates in over 40 countries.