A tough 2023 may be catching up with some companies. Fashion and retail layoffs have marked the start of 2024 as restructures and turnarounds take hold.
Consumer spending around apparel and accessories proved tepid last year as companies saw pickier shoppers procrastinate around major shopping events, such as back-to-school and Black Friday.
The year kicked off with waves of layoffs and more may be looming in 2024 as companies tamp down on spending.
What follows is a running list of industry layoffs affecting the West Coast region, which will be updated as news is confirmed.
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Ambsn Closes its Doors
Another surf brand has decided to fold up shop. This time its San Clemente-based Ambsn (pronounced “ambition”), the swim trunks brand started by brothers Dylan and Dustin Odbert in 2003.
The brand and brothers announced earlier this year the decision to wind down the brand as the two pivot to a second act in car air freshener brand Make Scents. The new endeavor has gotten a good start with many of the same surf accounts that had once carried the Odberts’ former brand now stocking Make Scents.
While the new business is turning heads with air fresheners, the company has larger ambitions calling itself a “premium accessories company, turning overlooked, everyday nothings into beautifully, elevated somethings.”
“Our aim is to reimagine the items other brands tend to see as afterthoughts [and] give them the attention they deserve,” the company said on its site.
Ambsn is the latest brand in the surf industry to close and follows the Chapter 7 liquidation last year by Newport Beach-based Banks Journal.
Vans Cuts More Than a Dozen Senior Roles
Layoffs continue at Vans as the company seeks to stem the downward trend of its business.
More than a dozen managers and other senior-level employees were informed in March that they would be let go by the Costa Mesa-based company.
It’s the latest move by parent VF Corp. to lead a turnaround of its largest business.
Unrelated to the layoffs, Head of Product and Merchandising Marissa Pardini is expected to step down from her position at the end of March after less than two years at Vans. The move is part of the continued rejiggering of the corporate structure so that the business can focus on elevating Vans product, staff was told in a memo from VF CEO Bracken Darrell.
Nike to Lay Off 1,600 under ‘Save to Invest’
Layoffs under Nike Inc.’s Save to Invest plan began Feb. 16, with reports saying another round will occur before the end of the February quarter.
Nike informed Oregon state of 1,500 layoffs. Various reports have said the total is closer to around 1,600.
The latter figure reflects about a 2 percent reduction in the global workforce, based on the 83,700-person headcount Nike reported in its annual report for the year ended May 31.
The cuts come as Nike looks to stave off of a challenging operating environment that’s seen its wholesale business take a hit, along with a slowdown in demand of its online business. The sportswear company’s also been criticized for a lack of newness in product that’s led it to say the savings under its cost-cutting plan would be pumped back into more consumer experiences and product innovation.
“We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable,” Nike CEO John Donahoe said in a memo, according to a Wall Street Journal report.
Columbia Sportswear to Cut Headcount Expenses
Portland-based Columbia Sportswear Co. CEO Tim Boyle said Feb. 1 the company plans to cut payroll costs in the range of 3 percent to 5 percent.
The layoffs come as Columbia warned its sales are likely to contract this year as retailers pull back on order writing and economic uncertainty hangs over consumers.
“Consumer demand and traffic [in the U.S.] tapered off throughout the year,” Boyle said during the company’s earnings call in recapping 2023.
Boyle said most of the layoffs will occur at the U.S. corporate level but did not specify how many workers that might involve.
The company’s headcount at the end of 2022, the most recent full-year data filed with the Securities & Exchange Commission, was 9,450 people. About 3,140 of those employees were based out of headquarters.
Columbia owns the Columbia Sportswear brand, along with prAna, Sorel and Mountain Hard Wear.
Companywide fourth-quarter net sales fell 10 percent, excluding the impact of exchange rates, to $1.1 billion.
The company said it is projecting sales this year to be down in the range of 2 percent to 4 percent to $3.35 billion to $3.42 billion.
eBay Says Layoffs Will Make Organization More Nimble
eBay Inc. President and CEO Jamie Iannone sent a notice to employees Jan. 23 of 1,000 positions set to be eliminated as the e-commerce company looks to make its workforce more efficient.
The layoffs equate to about 9 percent of the San Jose company’s full-time staff and will also see eBay cut back on contractor work.
“Despite facing external pressures, like the challenging macroeconomic environment, we know we can be better with the factors we can control,” Iannone wrote. “While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business.”
eBay net revenue in the third quarter grew 5 percent to $2.5 billion. The company’s net income narrowed to $545 million compared to $552 million in the prior year.
REI CEO Blames Layoffs on ‘Challenging’ Environment
A top-heavy management structure, promotions and a challenging business environment in 2023 are now being addressed by Sumner, Wash.-based REI.
The outdoor retailer’s CEO, Eric Artz, initially warned employees in December of layoffs and confirmed 357 on Jan. 25 in an employee message REI also made public. The majority of those positions, 200, are at headquarters.
REI’s also forecasting a 2024 revenue decline from last year.
The financial outlook led Artz to inform staff merit increases at headquarters will not be awarded this year and any recent leadership positions left open will not be filled as the business looks to “right-size” at the management level. REI expects to trim senior leadership staff by 22 percent this year.
Quoted: “As you know, the state of the business – and our industry – has become increasingly challenging and highly promotional,” Artz said. “As I shared in my most recent CEO Huddle, while the U.S. as a whole has avoided entering a recession (by definition, two consecutive quarters of total U.S. market decline), outdoor specialty retail has experienced four quarters of decline – and that trend has been worsening. While we were able to outperform this trend for much of last year, it caught up to us in Q4 and we now expect conditions to remain very challenging throughout 2024.”
Levi’s, Dockers Parent Says It’s Looking to Get More ‘Productive’
Levi Strauss & Co. said Jan. 25 it plans to lay off anywhere from 10 percent to 15 percent of its global workforce. That equates to as many as 2,865 positions, based on calculations of numbers provided in the company’s annual report. The layoffs are expected in the first half of 2024.
The cuts are part of the company’s Project Fuel cost-cutting plan that emphasizes an increased focus on direct-to-consumer. The San Francisco company will also exit its Denizen denim business as it works toward what President and incoming CEO Michelle Gass said is a “long-term vision to own denim lifestyle.”
Quoted: “As we are tightening our strategies and accelerating DTC first, this work will be ongoing and is expected to deliver approximately $100 million in net savings for fiscal 2024,” Gass said. “The majority of the savings is related to a 10 to 15 percent reduction of our global corporate workforce. In addition, we’ve identified savings related to streamlining our global operating model, rewiring our go-to-market process and improving productivity and profitability across our channels consistent with our values.
Vans Turnaround Leading to Deep Cuts
Layoffs at Vans are coming fast now for the Costa Mesa-based company owned by VF Corp.
VF confirmed last year about 500 layoffs across its global organization. Now, the specific impact to Vans is clearer.
The company informed the state it expects 42 layoffs at its corporate headquarters to be completed by the end of January.
Vans’ Santa Fe Springs distribution center is being shuttered, which will result in 207 layoffs by Feb. 23. Another 48 layoffs at the facility will occur by March 22.
Quoted: “The seriousness of the situation gives me a sense of urgency and a desire to move quickly on key steps,” VF President and CEO Bracken Darrell said in October during VF’s earnings call. “Our biggest business [Vans] is declining. The U.S. isn’t working well. The innovation engines that have historically been strong, has drifted down over the past few years. Employees still love the brands and businesses, but the morale has been hurt by the poor performance and costs are too high.”
Boardriders Transition to Authentic Results in Steady Layoff Stream
Boardriders continues to shed more of its workforce as the business transitions operations to new parent Authentic Brands Group.
The Boardriders business – former owner of RVCA, Roxy, Element, Quiksilver, Billabong, DC Shoes and Von Zipper – already revealed cuts of 95 last year across the Huntington Beach headquarters, RVCA headquarters, Billabong Universal CityWalk store and the Mira Loma distribution center.
Another 139 are expected by Feb. 4 in Mira Loma.
Authentic Brands has never publicly addressed the layoffs, only disclosing them in filings with the state.
The Boardriders brands are transitioning to licensing deals, which outsource work, such as product development and distribution, to third-party businesses. In other words, there’s no longer a need for as many employees under the new operating model.
Nike Aims for $2B in Cuts to Spending, Confirms Layoffs
Beaverton, Ore.-based Nike Inc. said in late December it’s rolling out a three-year plan expected to trim as much as $2 billion in costs through layoffs, automation and technology implementation among other things.
This is expected to result in around $400 million to $450 million in charges, mostly attributable to employee severance in its current fiscal year. An actual number of employees impacted by this restructuring has not yet been announced or determined.
Nike Inc. owns the Nike, Jordan Brand and Converse labels.
Quoted: “Today, we know we must be faster, increasing the pace of innovation, increasing the pace of market-to-consumer and increasing our agility and responsiveness,” Nike Inc. CEO John Donahoe said in the company’s December earnings call. “To drive this, we will embrace a significant savings plan to create investment capacity to fuel profitable growth at speed and scale.”
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