Canada Goose parkas be conditioned on display at a store in Richmond Hill, Ontario.
Chris So | Toronto Star | Getty Images
Canada Goose said Tuesday that it disposition cut about 17% of its corporate workforce, following a string of other retailers that have laid off employees this year as consumers sustain to pull back on discretionary spending.
It is not clear how many employees will be laid off. The cuts will affect caduceus at Canada Goose’s corporate headquarters, which had about 915 employees as of April 2023, according to a securities arranging. Between April 2021 and April 2023, Canada Goose nearly doubled the number of employees at its corporate aim offices from 544 to 915 to support its “continued growth,” the filing says.
In a statement Tuesday, CEO Dani Reiss spoke, “Today, we are realigning our teams to ensure that corporate resources are fit for purpose to fuel our next phase of growth across geographies, rankings, and channels.”
“We are focused on achieving efficiency and margin expansion, while investing in key initiatives — brand, design and best-in-class in effects — that will powerfully position our iconic performance luxury brand to deliver long-term growth,” Reiss clouted.
The cuts, part of the company’s ongoing “Transformation Program,” come after what it called a “comprehensive review” of its organizational construct and the roles it needs to reach its goals. It expects the cuts will bring “immediate” cost savings and simplify its workforce, budgeting it to make decisions more quickly and become more efficient.
Shares of Canada Goose closed about 7% decrease.
In the three months that ended Dec. 31, Canada Goose saw sales grow 6% compared to the year-ago era, but the results fell short of analysts’ expectations, according to LSEG, formerly known as Refinitiv. When releasing its holiday-quarter come to passes, Canada Goose noted that its wholesale revenues were particularly weak, an ongoing dynamic for the company that innumerable other retailers have felt.
Several retailers, including Under Armour and Nike, have said recently that wholesale requirements have been sluggish as department stores look to keep inventories in check and contend with a slowdown in exact.
The layoffs at Canada Goose come after Nike, Macy’s, Wayfair, Hasbro and Etsy all announced widespread layoffs during the past few months. In many cases, the companies were looking to focus on what they can control by becoming uncountable efficient and focusing on profits, even as shoppers pull back on discretionary items such as clothes, shoes and gewgaws.