VF Corp, owner of shoe and apparel manufacturer Vans, has confirmed the elimination of 500 positions as part of its restructuring strategy.
The job cuts will affect all brands, corporate functions and geographies, Reuters reports.
In its second quarter of fiscal 2024 results announcement, the company revealed the launch of a transformation programme known as Re-invent to improve its operating performance and concentrate on brand-building.
The company will implement a large-scale cost reduction programme to deliver $300m in fixed cost savings.
The programme will focus on cutting down on expenditure in non-strategic areas of the business, and simplifying and right-sizing its business structure.
The company’s spokesperson stated: “As part of VF’s new Re-invent strategy and with the aim of improving operational efficiency, we have eliminated approximately 500 salaried positions across the company globally.
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“We’re committed to handling this restructuring with dignity and respect for all involved and want to thank those impacted for their valued contributions to VF.”
The job cuts follow pressure on VF Corp from activist investor companies Legion Partners Asset Management and Engaged Capital in October 2023 to cut costs and halt acquisitions.
In Q2 2023, VF Corp reported a 2% decline in revenue to $3.03bn from $3.08bn in the same period of the previous year.
VF Corp, which also owns North Face, Timberland and Dickies, had approximately 33,000 employees as of 1 April 2023, according to a regulatory filing.
The company eliminated 600 office-based roles in August 2022.