Levi’s to Cut 800 Jobs

Levi Strauss & Co. (San Francisco) has announced a global productivity initiative, occurring in phases over the next 12-18 months, that will save $175-$200 million a year.

The first phase of the initiative, to begin next week, will result in the loss of 800 jobs.

The cuts, of roughly 20 percent of the company’s nonretail and nonmanufacturing staff, will eliminate management layers, removing duplicative roles, regroup country clusters and incorporate other structural changes.

In its last quarterly report, for its fourth quarter ended Nov. 24, 2013, Levi’s net income had fallen 67.9 percent, revenues were down 0.2 percent and gross margin fell to 49 percent of net revenues (from 50 percent a year earlier).