New York-based luxury fashion retailer Ralph Lauren revealed plans to reduce its global workforce as part of initiatives to deal with the impact of Covid-19.
The decision is part of the company’s reorganisational strategy to position itself for long-term growth and value creation.
Implemented by the end of the company’s fiscal 2021, details regarding the exact number and roles impacted remain undisclosed.
Ralph Lauren expects to incur total estimated pre-tax charges of approximately $120m to $160m in relation to the job cuts decision.
Furthermore, the retailer expects to save approximately $180m to $200m in gross annualised pre-tax expense.
Chairman and chief creative officer Ralph Lauren said: “Over 53 years ago, this company started with a single tie and a dream that made it into a way of life.
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“The timeless values we founded on have propelled us on an incredible journey – one that has seen great challenges and amazing opportunities along the way.
“Through it all, our commitment to stay true to who we are, while evolving with the world around us, has helped to secure our future and our place as one of the world’s most beloved and inspiring brands.”
Ralph Lauren specialises in designing, marketing and distributing lifestyle products in apparel, footwear and accessories, home, fragrances, and hospitality.
As part of the restructuring, the company plans to simplify its organisational structure and focus more on digital transformation.
Furthermore, it will invest in new technologies that will help offer a better shopping experience for its customers.
In April, Ralph Lauren announced that its business leaders will take salary cuts while its store employees will be furloughed to offset the coronavirus impact.