Tommy Hilfiger, Calvin Klein owner announces plan to fire 10% staff globally
PVH Corp, the owner of famous brands such as Tommy Hilfiger and Calvin Klein, has announced job cuts. The American clothing company PVH Corp, formerly known as the Phillips-Van Heusen Corporation, also announced it'll scale back its full-year outlook while saying that high inflation is hurting spending on discretionary products, as per a Bloomberg report.
The company plans “to reduce people costs in its global offices by approximately 10%” by the end of the next year to improve efficiency, its statement mentioned on Tuesday. The apparel company reportedly now expects revenue to decline this year, compared with a previous projection of gain.
The report mentioned that consumer companies are lowering their expectations as decades-high inflation eats into consumer demand, especially for discretionary items such as apparel. Retailers from Kohl’s Corp. to Nordstrom Inc. have revised guidance downward in recent weeks.
In addition to lower demand, PVH reportedly said it’s revising its 2022 outlook based on “a more promotional environment, particularly in the North America wholesale business.” Apparel companies are struggling with a glut of inventory that was built up during the pandemic as consumer priorities shift, which is forcing them to sell off merchandise at lower prices.
In recent weeks, many big companies have announced layoffs for different reasons respectively. Tech giant Microsoft announced lay off of nearly 1,800 employees in July 2022, which affected almost 1% of its 1,80,000-strong workforce across its offices and product divisions. Elon Musk’s Tesla too began laying off employees as part of the targetted 10% reduction in the workforce in June 2022.
Last week, American automobile manufacturer Ford confirmed that it is laying off roughly 3,000 employees and contract workers, with the cuts primarily affecting staff in the US, Canada and India. And as recently as yesterday, the news of Snapchat’s developer company Snap Inc. planning to lay off around 20% of its nearly 6,500 employees came out, which is likely to impact over 1,000 employees.