Levi's to cut 700 non-retail jobs as Q2 revenues plummet

The company says it's ready for changes brought on by the pandemic, including the casualization of fashion and new consumer behaviors.

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Levi's on Tuesday said in a press release that this year it will eliminate about 700 global non-retail and non-manufacturing jobs, or 15% of that workforce.

The denim retailer also reported that, with both company and third-party stores closed due to the pandemic for most of the second quarter, net revenues in the period fell 62% to $0.5 billion, offset partly by 25% growth in e-commerce. Digital sales were 15% of total company revenue, compared to 5% a year ago, and grew at a faster rate than previously.

Levi's swung to an adjusted net loss of $192 million from adjusted net income of $69 million last year, and loss before interest and taxes reached $206 million, partially offset by cost cuts. The period's $448 million operating loss reflects the lower adjusted EBIT plus $67 million in restructuring charges, $87 million in COVID-19-related inventory costs and $88 million of other COVID-19-related charges for customer receivables and asset impairments, the company said.

This news brief is based on reporting published by Retail Dive on 2020-07-08. The original report is linked below.