VF Corp., the parent company of The North Face, Vans, and Dickies confirmed that it has implemented another round of layoffs, but didn’t share how many employees or what areas of the business are impacted.
“VF confirms that it has begun a reorganization related to select commercial functions globally, intended to align these organizational structures to its new business model,” said a statement shared by Director of External Communications Ashley McCormack. “This work relates to the company’s previously announced turnaround strategy. While these decisions are never easy, we are confident this work will result in a stronger foundation that supports the company’s growth and value creation objectives. We’re committed to handling these changes with dignity and respect for all involved and want to thank those impacted through this process for their valued contributions to VF.”
Year-over-year revenues declined at every brand in the company’s earnings results for the quarter ended Sept. 28, but it generated net income of $52 million.
CEO Bracken Darrell and CFO Paul Vogel warned at an Investor Day in November that while its gross margins were improving and the company had reduced its debt and leverage, additional cost-cutting would be forthcoming as part of its Reinvent transformation strategy.
Since the Reinvent program began, cumulative restructuring charges were $134.1 million as of Sept. 28, according to VF Corp.’s second quarter results. The company estimated that total charges will be between $190 million and $210 million.
“Of the total estimated charges, the Company anticipates that approximately 70% will relate to severance and employee-related benefits and the remainder will primarily relate to asset impairments and write-downs,” according to VF Corp.’s second quarter results.
In November, 242 employees were laid off after the company shuttered a distribution center in Virginia.
VF Corp. will report its third quarter results for fiscal year 2025 on Jan. 29.
- Adjusted operating margin of at least 10%.
- Adjusted gross margin of at least 55%.
- Adjusted SG&A as a percentage of revenue of 45% or lower.
- Net leverage of 2.5 x or below.