Levi's announced on Thursday evening that it plans to reduce its workforce by 10% to 15% worldwide in order to improve productivity following a fiscal year 2023 described as 'difficult'.
The American clothing and accessories group specifies that this decision should result in a restructuring charge of between 110 and 120 million in its first-quarter accounts.
The San Francisco-based brand adds that additional provisions may be booked in the future, depending on the progress of these cost-cutting measures.
This announcement comes at a time when Michelle Gass, the former head of American department store chain Kohl's, who previously worked for Starbucks and P&G, is due to take on the role of CEO, replacing Chip Bergh, who is leaving the company.
In a press release, however, Levi's said it had managed to end 2023 on a positive note, with sales up 3% on a reported basis, to $1.6 billion.
Its forecasts for 2024 are considered less encouraging, the group having said it expected limited sales growth of 1% to 3% this year.
Earnings per share (EPS) are expected to be between $1.15 and $1.25 for the full year, compared with $1.10 in 2022.
Following these announcements, Levi's shares were up on the New York Stock Exchange early Friday morning, gaining more than 2% after opening in the red.
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Levi Strauss & Co. is an apparel company. The Company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Signatureby Levi Strauss & Co., Denizen, Dockers and Beyond Yoga brands. The Company operates through three geographical segments: Americas, Europe, and Asia. It designs, markets and sells directly or through third parties and licensee's products that include jeans, casual and dress pants, tops, shorts, skirts, dresses, jackets, footwear, and related accessories for men, women and children around the world. The Companyâs products are sold in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,200 retail stores and shop-in-shops. Outside the United States, department stores, specialty retailers, franchised or other brand-dedicated stores and shop-in-shops are its primary distribution channels.
LEVI STRAUSS & CO. 
