Victoria's Secret Cuts 5% of Corporate Staff in Reorganization
Victoria's Secret & Co has cut about 160 management roles, or 5 percent of its home office staff, and hired a former Amazon.com executive as part of a reorganization following its separation from L Brands last year. The company also named executives to three key leadership roles reporting to Chief Executive Officer Martin Waters. Amy Hauk, who has been heading the company's PINK brand since 2018, will take on the additional role of chief executive of the Victoria's Secret division, the company said. The corporate overhaul includes bringing together the company’s three lines of business — Victoria’s Secret, PINK, and Beauty — under one umbrella. The changes are expected to result in $40 million in cost savings for Victoria’s Secret.
Total Retail's Take: Growing pains aren't a surprise as Victoria's Secret works to revamp its image, maintain its current customers and acquire new ones — all while operating independently of former owner L Brands. By integrating the three business units (Victoria’s Secret, PINK, and Beauty) into a single organization, VS&Co. expects to realize improved efficiencies within its supply chain and merchandising operations, leading to faster speed to market and tighter control of its inventory. Furthermore, VS&Co. will continue to promote and market its message of inclusivity, a stark contrast to the brand's previous strategy.