Q1 of 2024 marked by series of job cuts

The first quarter of the year has outlined the tough reality of the current market, with last year’s challenging financial period leaving many companies with no option but to initiate strategic reviews. And, as part of this process, inevitably the question of jobs comes into play, with roles, departments and geographies coming under the microscope of cost-saving initiatives. Here are some of those that have already had to make that tough decision to reduce their workforce.

Rent The Runway

Rental platform Rent The Runway started the year on a lacklustre note with the announcement that it would be slashing 37 corporate positions, representing around 10 percent of its workforce, according to a filing with the SEC. The move was part of a strategic initiative to instead invest in growth areas such as marketing and customer experience.

Macy’s

Ahead of a series of store closures, US department store Macy’s said it was preparing to lay off 2,300 employees, accounting for 3.5 percent of its workforce. The majority of the roles impacted were to be in corporate positions associated with its retail network, with the company set on a plan to reposition its store portfolio and evaluate its existing locations. As such, five stores were expected to close as well as two furniture galleries. This news was shortly followed by the later revelation that the company would be closing a further 150 of its stores, with 50 set to shutter by the end of the year.

Nike

Sportswear giant Nike confirmed mounting speculation that it is to lay off 2 percent of its workforce in February, a move that came shortly after the launch of a strategy designed to streamline the business. In an internal memo to employees, CEO John Donahoe said the decision to “right-size” the organisation would see the company pivot towards its “biggest growth opportunities, as interest in sport, health and wellness have never been stronger”.

Boardriders

One year on from Authentic Brand Group’s acquisition of the Boardriders and the group is now believed to be in the process of laying off a significant percentage of its workforce, According to documents filed with the California Employment Development Department seen by WWD, the sports apparel manufacturer outlined plans to cut at least 590 roles between February 4 to April 26. The majority of the positions are located in the company’s Mira Loma distribution centre, while the rest reside in its headquarters in Huntington Beach, California.

Vans

Under the direction of its parent company VF’s turnaround plan, footwear brand Vans is believed to have eliminated a total of 42 positions in its Costa Mesa-based office, according to a filing seen by various media outlets. This built on VF’s 500-strong lay off process initiated last November across its entire business, the launch of which came as part of the group’s efforts to invest instead in brands and long-term growth.

Columbia Sportswear

In light of what its board believes will be a challenging year, Columbia Sportswear announced its intention to slash between 3 to 5 percent of its corporate workforce by the end of the first quarter. The news came alongside the report of a disappointing financial period for the company, which saw a 1 percent increase in its full year net sales for 2023 yet an operating income drop of 27 percent to 113.1 million dollars. For the fiscal year 2024, this is only expected to worsen, with net sales expected to fall between 4 to 2 percent.

Levi Strauss & Co.

In the earlier part of the first quarter, American denim brand Levi Strauss & Co. revealed plans to reduce its global corporate workforce by 10 to 15 percent ahead of the company’s repositioning plan and in preparation for its next phase of growth. This was later followed by the news that the company would be cutting jobs at its European headquarters in Machelen, Belgium, with 42 employees expected to be made redundant.

REI

Despite the news that outdoor retailer REI was planning to open 10 new stores throughout 2024, the company’s CEO Eric Artz made the announcement that it would also be reducing its total workforce by 357 people, with jobs in its headquarters, S&CS, experiences and distribution centres to be impacted. Artz said in an open letter that the decision was “primarily driven by financial necessity”, with a strategic approach taken in order to evaluate “team structures against business needs to ensure consistency”.

Thinx

Period pants brand joined the slew of retailers, laying off 95 employees at the beginning of the year according to a notice filed in the state of New York. The layoffs, which are to take place May 1, come as part of a “merger”, possibly linked to Kimberly-Clark’s acquisition of a majority stake in the company back in 2022.

Fruit of the Loom

US apparel manufacturer Fruit of the Loom was another to issue a filing in which it stated that it would be letting go over 100 workers at its South Carolina distribution centre by July 1. In a statement to Sourcing Journal, the company said that it was “constantly analysing its business to ensure [it] remain[s] as competitive as possible”, with the decision to close the site associated with a consolidation strategy.

Fanatics

Sports and merchandising manufacturer Fanatics said it was eliminating just over 100 jobs in an attempt to reduce the rate of redundancies in its core commerce business. According to Sportico, the impacted jobs accounted for less than 1 percent of the company’s workforce, where an overhaul of the operating model has been underway.