US brand Levi Strauss announced it will be cutting 700 jobs to cope with the financial losses it suffered as a result of Covid-19.
The redundancies amount to around 15 per cent of its corporate staff after suffering a significant hit to its sales in the latest quarter of 2020 – calculated to be a 62 per cent drop.
Levi's reported a loss of $364 million (approximately €323 million) in the three months leading up to 24th May, compared to a profit of $29 million (approximately €25 million) in the same period last year.
The company said the redundancies were necessary due to the uncertainties brought about by the impact of Covid-19, and although shoppers have started to visit re-opened stores again, sales are still expected to be impacted by the end of the year.
"There are still a lot of uncertainties," said Levi’s chief executive, Chip Bergh.
Levi's said it employed about 15,800 people at the end of November, including 8,500 staff in retail and 1,800 personnel in manufacturing. The company added that the staff reductions are happening globally, and “final plans will vary by country and are subject to applicable consultation processes.”