Canada Goose Announces Layoffs Amidst Retail Slowdown
Canada Goose, known for its iconic performance luxury brand, announced on Tuesday that it will be cutting about 17% of its corporate workforce. This news comes as many retailers have been forced to lay off employees due to a slowdown in consumer spending on discretionary items.
The exact number of employees affected by the layoffs is unclear, but they will primarily impact staff at Canada Goose’s corporate headquarters. The company had nearly doubled its corporate workforce in recent years to support its growth, but now it is realigning its teams to ensure resources are fit for purpose.
CEO Dani Reiss stated, “We are focused on achieving efficiency and margin expansion, while investing in key initiatives to position our brand for long-term growth.” These layoffs are part of the company’s ongoing “Transformation Program” aimed at simplifying its workforce and improving decision-making processes.
Shares of Canada Goose fell about 3% following the announcement. The company recently reported modest sales growth in the holiday quarter, but it fell short of analysts’ expectations. Like many other retailers, Canada Goose has struggled with weak wholesale revenues as department stores keep inventories in check.
The layoffs at Canada Goose reflect a larger trend in the retail industry, with companies like Nike, Macy’s, Wayfair, Hasbro, and Etsy all announcing widespread layoffs in recent months. These companies are focusing on becoming more efficient and profitable in the face of declining consumer demand for non-essential items.
As retailers continue to navigate uncertain economic conditions, layoffs and restructuring efforts may become more common as companies seek to adapt to changing consumer behavior.
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