Proactive Investors - Canada Goose Holdings Inc (NYSE:TSX:GOOS, TSX:GOOS), the luxury outdoor jackets retailer, is planning on cutting 17% of its global corporate workforce as part of a cost-cutting scheme as demand in the US remains under pressure.
Around 156 jobs are expected to be cut under the plans, with the group’s head office having employed 915 workers as of April last year, per its annual report.
Canada Goose shares tumbled 5% following news of the plans, adding to the 37% loss in market value over the last twelve months.
In another shakeup, Carrie Baker, the group’s president of brand and commercial, is set to expand her role to manage the design of products, while Daniel Binder, the chief transformation officer, will oversee the management of global stores.
"Today, we are realigning our teams to ensure that corporate resources are fit for purpose to fuel our next phase of growth across geographies, categories, and channels," chief executive officer Dani Reiss said.
In February, the luxury coat maker posted a 14% fall in quarterly revenue in North America, with demand in the sector continuing to dwindle.
Earlier this month, Gucci owner Kering (EPA:PRTP) issued a profit warning after experiencing a slowdown in sales, sending shares in the sector lower.
Sales in the first quarter are expected to fall by 10% year-on-year, with revenues from Gucci, which accounts for two-thirds of operating income, set to drop by 20%.