Canada Goose parkas hang on display at a store in Richmond Hill, Ontario.
Chris So | Toronto Star | Getty Images
Canada Goose said Tuesday that it should cut about 17% of its corporate workforce, following a string of other retailers which have laid off employees this 12 months as consumers proceed to tug back on discretionary spending.Â
It shouldn’t be clear what number of employees can be laid off. The cuts will affect staff at Canada Goose’s corporate headquarters, which had about 915 employees as of April 2023, in line with a securities filing. Between April 2021 and April 2023, Canada Goose nearly doubled the variety of employees at its corporate head offices from 544 to 915 to support its “continued growth,” the filing says.
In a press release Tuesday, CEO Dani Reiss said, “Today, we’re realigning our teams to make sure that corporate resources are fit for purpose to fuel our next phase of growth across geographies, categories, and channels.”
“We’re focused on achieving efficiency and margin expansion, while investing in key initiatives — brand, design and best-in-class operations — that may powerfully position our iconic performance luxury brand to deliver long-term growth,” Reiss said.
The cuts, a part of the corporate’s ongoing “Transformation Program,” come after what it called a “comprehensive review” of its organizational structure and the roles it needs to succeed in its goals. It expects the cuts will bring “immediate” cost savings and simplify its workforce, allowing it to make decisions more quickly and turn out to be more efficient.Â
Shares of Canada Goose closed about 7% lower.
Within the three months that ended Dec. 31, Canada Goose saw sales grow 6% in comparison with the year-ago period, but the outcomes fell wanting analysts’ expectations, in line with LSEG, formerly often known as Refinitiv. When releasing its holiday-quarter results, Canada Goose noted that its wholesale revenues were particularly weak, an ongoing dynamic for the corporate that many other retailers have felt.
Several retailers, including Under Armour and Nike, have said recently that wholesale orders have been sluggish as department shops look to maintain inventories in check and contend with a slowdown in demand.Â
The layoffs at Canada Goose come after Nike, Macy’s, Wayfair, Hasbro and Etsy all announced widespread layoffs over the past few months. In lots of cases, the businesses were trying to deal with what they’ll control by becoming more efficient and specializing in profits, whilst shoppers pull back on discretionary items similar to clothes, shoes and toys.
