Ralph Lauren announced it would layoff thousands of its global workforce by the end of the fiscal year as the company struggles during the coronavirus pandemic.
Reuters reported that the company would cut 15 percent of its workforce as the luxury brand aims to lower costs due to the impact the COVID-19 pandemic has had on global economies.
The company did not detail the amount or types of jobs that would be cut. Ralph Lauren last reported a total workforce of around 24,900, meaning 3,700 employee’s jobs could be on the line.
“The changes happening in the world around us have accelerated the shifts we saw pre-COVID, and we are fast-tracking some of our plans to match them,” Chief Executive Officer Patrice Louvet said in a statement.
Ralph Lauren has 530 stores globally and said the changes would bring about more support for its online business.
The company’s cuts come as more customers focus on essential spending during the pandemic rather than non-essential shopping at retailers such as Ralph Lauren.
The pandemic has also put significant mergers on hold after France’s LVMH announced it was trying to exit a $16 billion deal to acquire Tiffany & Co, Reuters reported.
Despite the pandemic’s effects on physical shopping, the New York-based company Ralph Lauren said it would invest in digital platforms to support broader e-commerce operations and personalization.
The company’s layoffs could result in gross annual pre-tax savings of about $180 million to $200 million, Ralph Lauren said.
It anticipates incurring one-time pre-tax charges of about $120 million to $160 million in fiscal 2021.