NEW YORK — Levi's said Tuesday that it will cut 700 office jobs, or about 15% of its worldwide corporate workforce, as it deals with a sharp drop in sales due to the coronavirus pandemic.
The San Francisco-based jeans maker said the layoffs will save it about $100 million a year and won't affect workers at its stores or factories.
Like other clothing companies, Levi's had to temporarily close its stores due to the virus. Many of the department stores that sell its jeans were also shut.
“We started the year with strong momentum, but the global pandemic and economic crises had a significantly negative impact on our second-quarter results, as our stores and most wholesale doors were closed around the world for the majority of the quarter," said Chip Bergh, president and chief executive officer of Levi Strauss & Co., in a statement. "I’m proud of how the team stepped up in response, accelerating our activation of key e-commerce and omni-channel capabilities, proactively cutting costs and managing cash smartly, and finding innovative ways to connect the Levi’s brand with its fans."
Levi Strauss & Co. said its second-quarter revenue sank 62% to $497.5 million. It reported a loss of $363.5 million, after reporting a profit a year ago. Adjusted losses came to 48 cents per share, beating Wall Street expectations, according to Zacks Investment Research.
The company said most of its stores are now open and seeing sales at about 80% of where they were a year ago.