(Toronto) Canada Goose Holdings announced the layoff of 17% of its global workforce.
In a note posted on the luxury parka maker’s LinkedIn page, CEO Dani Reiss says the job cuts are aimed at putting the company in a better position to grow.
He says the Toronto-based company will now focus on efficiencies and key initiatives in branding, design and operations.
Mr. Reiss thanked the departing employees for spending part of their careers at Canada Goose. The company will remember their commitment, their achievements and their impact, he said.
“Decisions like this are heartbreaking, but at the same time, I am convinced that this is necessary for the next phase of our business,” Mr. Reiss said.
When asked about the scale and nature of the reductions, Canada Goose did not disclose the number of employees affected. According to financial markets data firm Refinitiv, Canada Goose had 4,760 employees as of April 2023.
These layoffs come after Canada Goose faced a particularly difficult winter.
Unseasonably warm temperatures have delayed the start of the parka buying season. “The first cold snap is boosting business,” said CFO Jonathan Sinclair during a call with analysts on March 1.er November to discuss the company’s second quarter financial results.
“It kind of reminds the consumer that this is the time they should go and buy cold weather clothing, so the longer you wait, the later (the sales period) starts, and I think that’s what we we experienced this year,” he added.
A few months later, as the company discussed its third-quarter performance, Mr. Reiss admitted that the company was facing a “challenging consumer environment” globally.
The company’s president of brand and commercial affairs, Carrie Baker, said Canada Goose is open to price increases as consumers shy away from buying expensive clothing amid rising inflation and interest rates remain high.
Although some parkas already sell for $2,000, a higher price would increase the luxury brand’s appeal, she argued.
Tuesday, the role of Mme Baker was expanded to also include design, while Beth Clymer, president of finance, strategy and administration, took on additional operational responsibilities that previously fell to Chief Operating Officer John Moran. The latter left the company on March 19.
To complement the role changes, Daniel Binder, head of transformation, will now also oversee the company’s international stores.
Canada Goose said the redesign is the result of a “comprehensive review” of its organizational structure and roles “necessary to achieve our strategic objectives, which is expected to deliver immediate savings, simplify the organizational structure, accelerate decision-making and increase efficiency across our entire operational platform.”
Canada Goose is expected to release its fourth-quarter and full-year financial results in May, in which it said it will provide further information on its transformation and outlook for fiscal 2025.
reference: www.lapresse.ca