Coach Inc. has left 150 people jobless in an attempt to monitor monetary costs. The layoffs took many by surprise, but Coach felt it was necessary in order for the company to flourish during the economic recession.
“During our analyst and investor conference in June, we unveiled a comprehensive long-term strategic plan to reinvigorate our business. To that end, we’ve announced certain restructuring actions to align our resources for maximum impact while effectively managing our expense ratio,” Coach said in an email, according toBusiness of Fashion.
The job dismissals totaled at over 10 percent of Coach’s U.S. corporate staff of 1,500, according to The Wall Street Journal. This cutback makes for a big change considering this is the first time the company has decided to layoff employees during the economic downturn.
Business of Fashion also highlighted the corporation’s latest competition with other high-end brands, such as Michael Kors, Kate Spade and Tory Burch. With so many fashion outlets to turn to, customers have given Coach less business than before, which has caused recent sales to plummet. As a result, the company officials felt that turning to layoffs was the best solution.
“This plan will drive efficiencies across our business by streamlining our organization and leveraging our global capabilities, resulting in savings that will, in part, fund key initiatives related to our transformation,” Coach told Business of Fashion.
There has not been word of expected layoffs in the near future, and Coach spokeswoman Andrea Shaw Resnick told The Wall Street Journal, “There is no further detail at this time.”
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