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    Ralph Lauren Plans To Cut Jobs And Save Profits

    2015/6/9 12:00:00 41

    Ralph LaurenLayoffsAchievements

    Ralph Lauren, the high-end clothing brand in the United States, recently began laying off workers, all of which are aimed at the pformation of the group.

    According to reports, the layoffs accounted for 5%, which means 750 Ralph Lauren employees lost their jobs.

    In the fourth quarter of March 28th, the total number of employees was 25 thousand, of which 15 thousand were full time employees and 10 thousand were part-time employees.

    60% at headquarters in the United States, the rest are overseas.

    Due to the ongoing restructuring and restructuring of the company, the total number of job cuts is not yet known, and most of the jobs with duplication or redundancy will be reduced.

    Ralph Lauren group has 6 brands, namely, Ralph Lauren (except Home Series), Polo, Denim & Supply, Lauren, Ralph Lauren Lauren and Home.

    In February of this year, Ralph Lauren announced the new global brand management strategy, which will arrange 6 brand presidents, each responsible for a brand.

    The 6 brand vice presidents report directly to Christopher H. Peterson, the global brand president of Ralph Lauren group.

    Ralph Lauren believes that the new architecture can maintain product style consistency of the same brand and group.

    Global scope

    The patency of internal information dissemination.

    At the same time, the group can save $100 million (about 620 million yuan) in operation cost annually.

    about

    Layoffs

    A decision made by a spokesman for Ralph Lauren said that the decision was difficult but necessary: "in order to achieve maximum growth and achieve greater operational and financial efficiency, the group decided to implement a new brand management structure.

    Therefore, we need to reduce the number of full-time employees.

    The cost of layoffs and restructuring, the rise of the US dollar and passengers.

    consumption

    Slowing down, in the fourth quarter ending March 28th, Ralph Lauren group net profit fell 19% to 124 million yuan (about 769 million yuan), net revenue rose from 1% US dollars to 11 billion 600 million yuan (18.9 yuan) (about 11 billion 720 million yuan).

    After the fourth quarter financial report was released, Peterson said in a conference call with Wall Street analysts. "In the past, we managed separate regional and channel businesses and had different products in different stores.

    However, the new structure will increase brand consistency and promote brand value, greatly reduce inventory (SKU), optimize inventory turnover, gain higher gross profit, and save sales, management and administrative expenses.

    "

    Rick Snyder, a senior retail analyst at investment group Maxim, believes that the restructuring of Ralph Lauren should be a correct decision to make the company's earnings. "The less SKU, the better the operating capital."


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