US-based fashion and beauty retailer Victoria’s Secret & Co (VS&Co) has decided to cut around 160 of its management roles, or 5% of its home office staff, as part of a corporate reorganisation.
The move is part of the company’s simplified leadership structure, which is intended to help it carry out its strategy and drive long-term growth goals.
The company will also reinvest in non-leadership roles as part of its reorganisation.
In line with the announcement, VS&Co has appointed executives to three key leadership roles to enhance customer experience and growth.
The company named Amy Hauk as CEO of its Victoria’s Secret and PINK businesses and Christine Rupp as VS&Co’s chief customer officer.
Greg Unis was appointed as chief growth officer, having previously led the Victoria’s Secret and PINK Beauty businesses.
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The new leadership structure is expected to save $40m on an annualised basis from the third quarter of the fiscal year 2022 (FY22).
In its streamlined structure, the company will merge its Victoria’s Secret, PINK and Beauty businesses into a single, collaborative organisation.
All three of its new executives will report to VS&Co CEO Martin Waters.
Waters said: “Over the last year, we have progressed a thoughtful revolution of our business by redefining the VS brand and rebuilding our strategy for growth.
“We can now better connect with and represent our millions of customers around the globe.
“As a result, we have more relevant brand positioning, more compelling merchandise assortments, and a more inclusive culture that celebrates our people.
“With our brand revolution well underway and gaining momentum, now is the time to reimagine our leadership structure to better align with a shifting consumer landscape and become more efficient as an organisation.”
Last month, Victoria’s Secret reported $1.484bn in net sales for the first quarter (Q1) of FY22, down by 4.5% from $1.554bn a year earlier.