Levi Strauss & Co. will lay off 10%-15% of its corporate employees, the retailer said in a call with investors on Jan. 25. Levi’s has about 20,000 employees, with 5,000 working in corporate roles, Reuters reported.

The layoffs are planned for the first half of 2024 as part of a plan to save $100 million in expenses this year, president Michelle Gass told investors in the call. The majority of the savings will come from the layoffs, she said. 

Gass will take over for Chip Bergh as CEO of the denim retailer on Jan. 29.

Levi Strauss ranks No. 191 in the Top 1000, Digital Commerce 360’s database of North America’s largest online retailers by web sales.

Levi’s financial results

The retailer reported net revenue grew 3% to $1.6 billion in its most recent fiscal fourth quarter ended Nov. 26. Levi’s DTC revenue grew 11% year over year to make up 42% of net revenue. DTC sales growth was offset by weaker wholesale sales, the retailer said.

Despite the growth, Levi Strauss is taking a “conservative” approach in 2024, Gass said. It updates its 2024 outlook to expect 1% to 3% revenue growth over 2023.

“We’re being realistic given the macro headwinds there and the pressure that we see with some of our key customers,” Gass said of expectations for 2024.

Levi’s also just announced a renewal to its naming rights of the San Francisco 49ers stadium. The 10-year deal is worth $170 million, the retailer said.

Other retail layoffs announced in January

Levi Strauss joined several other tech and retail companies in announcing layoffs in January. EBay plans to lay off 1,000 workers, 9% of its total workforce. EBay ranks No. 6 in Digital Commerce 360’s Global Online Marketplaces database. The database ranks the 100 largest such marketplaces by third-party GMV. 

Macy’s, Amazon, and Wayfair also all cut their workforces in the first month of 2024. In addition, REI announced on Thursday that it would lay off 357 employees, about 2.2% of the retailer’s total workforce, The Seattle Times reported.

Macy’s ranks No. 17 in the 2023 Digital Commerce 360 Top 1000. The Top 1000 is a ranking of North America’s leading retailers by online sales. Amazon ranks No. 1, Wayfair ranks No. 10, and REI ranks No. 67.

Meanwhile, Google announced layoffs of hundreds of workers across hardware, digital assistant and engineering sectors earlier in January. Software company Unity plans to cut 25% of its workforce by March, impacting about 1,800 workers.

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