Canada Goose jackets are on display at a store in Richmond Hill, Ontario.
Chris Su | toronto star | Getty Images
Canada goose It said Tuesday it would cut about 17% of the companies' workforce, following a string of other retailers laying off staff this year as consumers continue to pull back on discretionary spending.
It is not clear how many employees will be laid off. The cuts will affect employees at Canada Goose's corporate headquarters, which had about 915 employees as of April 2023, according to a securities filing. Between April 2021 and April 2023, Canada Goose nearly doubled headcount at its head offices from 544 to 915 to support its “continued growth,” the filing says.
In a statement on Tuesday, CEO Danny Rees said: “Today, we are realigning our teams to ensure the company's resources are fit for purpose to fuel the next phase of growth across geographies, categories and channels.”
“We are focused on driving efficiencies and margin expansion, while investing in key initiatives – best-in-class brand, design and operations – that will firmly position our premium performing luxury brand for long-term growth,” Rees said.
The cuts, part of the company's ongoing “transformation programme,” come after what it called a “comprehensive review” of its organizational structure and the roles it needs to achieve its goals. It expects the cuts to deliver “immediate” cost savings and streamline 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 with the same period a year ago, but results fell short of analysts' expectations, according to LSEG. In releasing its holiday quarter results, Canada Goose noted that its wholesale revenue was particularly weak — an ongoing company dynamic felt by many other retailers.
A number of retailers, incl Under the armor And Nikerecently said wholesale orders were slow as supermarkets looked to monitor inventories and counter sluggish demand.
Canada Goose layoffs come after Nike, Messi, Wayfair, Hasbro And Etsy Everyone has announced widespread layoffs over the past few months. In many cases, companies have been looking to focus on what they can control by becoming more efficient and focused on profits, even as shoppers back away from discretionary items like clothing, shoes and toys.
