VF Corporation Announces Layoffs, Slashing Staff by 600
Lagging sales of Vans in China likely contributed to the decision
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VF Corporation is laying off 300 employees and eliminating 300 open positions, according to an internal email sent yesterday to employees from company president and CEO Steve Rendle.
A copy of the email was first obtained by Denver Business Journal. OBJ confirmed its authenticity with VF.
The layoffs and position cuts are meant “to align our people and capabilities with our highest strategic priorities,” Rendle said in the email. “I recognize that the past few years have been intense,” he wrote. “And while the environment will likely continue to be marked by volatility, we have strong momentum in the majority of our businesses. At the same time, we’re working to improve those areas of the business that need attention.”
The email did not detail which departments or brands will be impacted by the reductions.
VF reported an increase in total revenue to $2.3 billion for Q1 FY 2023. Brands like The North Face—which saw an increase of $500 million—helped things along. Other assets, however, dragged the company-wide picture into gloomier territory. Vans alone was down almost $1 billion. Supply chain issues and the strength of the U.S. dollar were cited for continued lagging sales in China, a major market for Vans. In March, Kevin Bailey was appointed to the helm of Vans and charged with bringing back “brand heat,” according to VF.
VF reported having 35,000 employees worldwide at the end of its 2022 fiscal year, with global revenue up 28 percent, to $11.8 billion, year over year. In total, the company owns 12 brands, including Smartwool, Timberland, and Icebreaker.
The elimination of 600 positions is hardly VF Corp.’s most significant workforce reduction. The company laid off 13,000 employees in 2006.
VF Corp. (VFC-NYSE) stock went into August at $45.50 a share, and ended the month at $41.45.