Vans parent VF Corp. continues to focus on trimming expenses, with plans to close a Santa Fe Springs distribution center in the coming months.
The permanent closure will result in 255 layoffs of pickers, drivers, leads, supervisors, auditors, and returns specialists among other positions, according to a notice to the state sent by a Vans HR representative.
The layoffs will occur in two rounds, with the first impacting 207 positions beginning Feb. 23. An additional 48 employees will be laid off beginning March 22. The company expects to be done with all layoffs by May 31, the notice to the state said.
There was no mention in the notice as to whether employees are being offered positions at the Ontario distribution center VF announced last year. The 1.2 million-square-foot property launched to service Vans and The North Face. It’s unclear if multiple brands were serviced by the Santa Fe Springs facility and if any or all of that work is being consolidated to the Ontario property.
Spokespeople for Vans and VF Corp. did not respond to a request for comment on the Santa Fe Springs layoffs.
The reductions follow the 42 cuts at Vans’ Costa Mesa headquarters as VF implements a companywide turnaround plan called Reinvent announced in October.
Reinvent has a target of trimming about $300 million in costs. It also includes a search for a new global brand president at Vans, creates an Americas division for VF, and has a goal of reducing debt. Former Vans Global Brand President Kevin Bailey stepped away from the footwear company as part of the Reinvent announcement to serve as VF’s chief transformation officer.
VF confirmed last year the strategy will result in about 500 total layoffs across the VF organization.
In October, at the time of VF’s fiscal second quarter earnings update, the company said it did not expect to see improvement in the Vans business through the remainder of its fiscal year.
Vans sales for the quarter ended Sept. 30 fell 23% in constant currency to $748.8 million.
VF plans to release the results of its fiscal third quarter next Tuesday.
For more related to the Vans turnaround, see the following:Â
