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    Levi 'S Parent Company'S Second Stage Restructuring Plan To Lay Off Another 500 People

    2014/11/12 15:42:00 22

    Levi 'SParent CompanyRestructuring PlanLayoffs

    The American cowboy fashion brand Levi's Levi's parent Levi Strauss & Co. announced the second phase of business restructuring and cost reduction plan yesterday, saying it will continue large-scale.

    Layoffs

    。

      

     

    Levi Strauss & Co. said the group has signed a strategic agreement of at least $143 million for five years with Wipro Limited (NYSE:WIT), a global technology service provider. It will include outsourcing of IT, finance, human resources, customer service and consumer relations from the first quarter of 2015, which means that the relevant positions will be withdrawn from Levi Strauss & Co., involving about 500 employees.

    The group will also continue to reduce management levels, eliminate duplication of jobs and change its structure.

    This stage will generate a restructuring of $4500-5500 and related.

    Cost

    Most of them will be recorded in the fourth quarter of fiscal year 2014.

    In addition, Levi Strauss & Co. will pay a minimum cost of $143 million for Wipro Limited (NYSE:WIT) VIP, and the final cost will depend on the actual demand of the group.

    In the first stage of business restructuring and cost reduction plan, Levi Strauss & Co. has cut about 800 non retail and non manufacturing jobs, accounting for nearly 20% of the total number of employees, and is expected to save 75 million -1 billion per year.

    The whole plan starts in March and is expected to last 12-18 months, aiming at reducing the operating cost of 1.75-2.00 billion annually.

    In the three quarter of August 24, 2014, the plan has already cost $103 million, and the cost savings will not exceed $100 million to $125 million in the next year, higher than expected.

    Levi Strauss & Co. continued to decline in the three quarter, down from 57 million 75 thousand US dollars in the same period last year to 50 million 620 thousand US dollars, or 11.3%.

    It was dragged down by the weak business in North America, with a total revenue of $1 billion 154 million 100 thousand, an increase of 1% over the same period of 1 billion 141 million 300 thousand dollars a year, a gross profit of 562 million 200 thousand US dollars, a decrease of 2%, and a gross margin of 150 basis points, down from 50.2% in the same period last year to 48.7%.

    profit

    It fell to $105 million 100 thousand from $118 million 100 thousand in the same period last year.

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