VF Corp. Lays Off 500 as Part of Turnaround Strategy
Denver-based apparel company VF Corp. confirmed Wednesday it will lay off 500 of its workers globally. The company — one of the world’s largest apparel, footwear and accessories retailers with brands like Vans, The North Face, Timberland, and Dickies — reported second quarter fiscal 2024 results on Oct. 30, with revenue down 2 percent. The earnings report also outlined a turnaround strategy called “Project Reinvent,” which aims to “enhance focus on brand-building and to improve operating performance” by improving North America results, deliver a Vans turnaround, reduce costs, and strengthen the balance sheet. Published reports show VF Corp. has about 35,000 employees globally.
Total Retail's Take: As it seeks to improve operational efficiency and reduce costs, VF Corp. has made the decision to eliminate select positions. Such action will be combined with investments in the organization's core brands, notably Vans, to help stem the tide of declining sales and help position them for future growth. The focus for VF Corp. is profitability, and accomplishing more with less — a frequently relied on means to that goal — is part of the strategy moving forward. With new leadership in place — President and CEO Bracken Darrell was appointed to the position in June — VF Corp. is poised to potentially grow market share for its brands, boost sales and profits, and strengthen its position going forward. But to start it will have to win over the trust and confidence of a workforce that as of this week just got a little bit smaller.