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Canada Goose said Tuesday it will cut about 17% of its corporate workforce, following a string of other retailers that have laid off employees this year as consumers continue to pull back on discretionary spending.
It’s not clear how many employees will be laid off. As of April 2023, Canada Goose employed around 915 people in its corporate head offices – a number that the company had nearly doubled between April 2021 and April 2023 to support its “growth,” according to a securities filing.
“Today, we are realigning our teams to ensure that corporate resources are fit for purpose to fuel our next phase of growth across geographies, categories, and channels,” CEO Dani Reiss said in a statement.
“We are focused on achieving efficiency and margin expansion, while investing in key initiatives – brand, design and best-in-class operations – that will powerfully position our iconic performance luxury brand to deliver long-term growth,” Reiss said.
The cuts, part of the company’s ongoing “Transformation Program,” come after what it called a “comprehensive review” of its organizational structure and the roles it needs to reach its goals. It expects the cuts will bring “immediate” cost savings and simplify its workforce, allowing it to make decisions more quickly and become more efficient.
Shares fell about 3% on the news.
In the three months ended Dec. 31, Canada Goose saw sales grow 6% compared to the year-ago period, but the results fell short of analysts’ expectations, according to LSEG. When releasing its holiday-quarter results, Canada Goose noted that its wholesale revenues were particularly weak – an ongoing dynamic for the company that many other retailers have felt.
A number of retailers, including Under Armour and Nike, have said recently that wholesale orders have been sluggish as department stores look to keep inventories in check and contend with a slowdown in demand.
The layoffs at Canada Goose come after Nike, Macy’s, Wayfair, Hasbro and Etsy all announced widespread layoffs over the last few months. In many cases, the companies were looking to focus on what they can control by becoming more efficient and focusing on profits, even as shoppers pull back on discretionary items like clothes, shoes and toys.