Victoria's Secret parent cutting 850 corporate jobs
L Brands said Tuesday it would cut 15 percent of its corporate workforce
L Brands, the owner of Victoria’s Secret and Bath & Body Works, announced Tuesday that it is cutting 850 jobs or 15 percent of its corporate workforce.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LB | LANDBRIDGE CO. LLC | 77.46 | +10.01 | +14.84% |
The retailer, founded by Leslie Wexner who has been under scrutiny for his ties to the late sex offender Jeffrey Epstein, said it expects second-quarter revenue to have fallen 20 percent from a year ago.
Left: Leslie Wexner, founder and CEO of L Brands. Right: Jeffrey Epstein. (Getty Images)
According to a company press release the retailer expects to generate $400 million in annualized cost reductions, with $175 million achieved in the fiscal year 2020.
REMINGTON ARMS DECLARES BANKRUPTCY DESPITE SURGING GUN DEMAND
The job cuts, along with several other tasks, are expected to help the company achieve the annualized cost reductions.
A Victoria's Secret store in the departure hall of Sydney International Airport is pictured in 2013. (iStock)
The other tasks include finding strategies to reduce merchandise costs at Victoria’s Secret, reducing store selling costs, closing the 250 Victoria’s Secret stores that the company previously announced and reducing operating costs in L Brands’ U.K. and China businesses, according to the company.
DIANE VON FURSTENBERG TO PAY LAID OFF EMPLOYEES ‘IN FULL’
L Brands is also in the midst of spinning off Victoria’s Secret into a separate company after a deal to sell it this year was scrapped. It plans to focus on running Bath & Body Works on its own.
“The Board and management remain committed to separating the Bath & Body Works and Victoria’s Secret businesses, as well as improving the profitability of the Victoria’s Secret business,” Andrew Meslow, L Brands’ CEO said in a statement.
“During the second quarter, we made meaningful progress toward these goals,” Meslow added. “Decisions relating to our workforce are incredibly difficult and not taken lightly, but these actions are necessary to best position our company for the long-term. On behalf of the Board and management team, I’d like to extend our deepest appreciation to the impacted associates for their contributions and dedication over the years.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The company also announced that most of its Bath & Body Works and Victoria’s Secret stores in North America have reopened.
L Brands, like other retailers, has been dealing with a sharp drop in sales after temporarily closing stores due to the coronavirus pandemic.
CORONAVIRUS FORCES LANE BRYANT, ANN TAYLOR OWNER TO FILE FOR BANKRUPTCY PROTECTION, CLOSE STORES
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LEVI | LEVI STRAUSS & CO. | 16.32 | +0.35 | +2.19% |
Levi's, for example, said earlier this month that it would cut 700 office jobs, also adding up to 15 percent of its corporate workers.
IF BROOKS BROTHERS GETS SAVED IT WON'T BE THE SAME
While other retailers have thrown in the towel including Brooks Brothers and Ann Taylor parent Ascena Group.
CLICK HERE TO READ MORE ON FOX BUSINESS
The Associated Press contributed to this article.