Dive Brief:
- PVH Corp., the owner of Calvin Klein and Tommy Hilfiger, laid off additional staff Tuesday as part of its workforce reduction plan, the company disclosed in a Form 8-K filed with the Securities and Exchange Commission.
- The cuts are part of PVH’s plan announced last year to reduce “people costs” in its global offices by 10%. The company plans to complete cuts by the end of 2023 and expects to save $100 million annually as a result.
- PVH stated it would “take additional actions under these plans,” in its third fiscal quarter, when it also expects to complete the plan.
Dive Insight:
While the exact number of people impacted by Tuesday’s announcement wasn’t disclosed, the company stated it would incur $50 million of severance expenses for this round of cuts, primarily in its second quarter. In 2022, it spent $20 million in severance related to this initiative, per the filing.
A WARN notice filed Tuesday in the state of New York stated that 123 of the 1,407 employees at three separate locations in New York City, had been laid off. This only represents the state of New York, and PVH's planned reductions impact its global workforce. PVH is headquartered in NYC.
The WARN notice also states the first layoffs will begin on Aug. 1, with subsequent cuts expected to occur on Aug. 15, Sept. 15, Oct. 9, Nov. 1 and Dec. 31.
“The workforce changes we are announcing today represent further steps toward our planned 10 percent reduction of people costs in our global offices by the end of 2023,” a spokesperson for PVH said in an email to Fashion Dive. “Workforce decisions that impact our people are never easy, and we are providing support for our associates through the transition process. We are confident we are taking the right steps to capture the untapped growth potential of our brands and be competitive for the future.”
The plan is meant to “drive efficiencies and enable continued strategic investments to fuel growth, including in digital, supply chain and consumer engagement,” per the filing.
The reduction strategy was announced in PVH’s financial results for its 2022 fiscal year. At that time, it had lowered its outlook amid sales and profit declines, with total revenue dropping 8% year-over-year, and some of its largest brands, Hilfiger and Klein, down 5% and 1%, respectively.
In PVH’s latest quarterly earnings released in May, it saw revenues increased 2% from the same period last year.
PVH has also seen leadership shakeups in the past few months. It recently hired Amber McCann away from Poshmark to become its new executive vice president and chief communications officer. Meanwhile, Avery Baker, who had been with the Tommy Hilfiger brand for roughly 24 years, announced she was stepping away earlier this month.
Editor’s note: This story has been updated to include specific layoff numbers for the New York region.
