Vans layoffs will come in two waves for the company’s Santa Fe Springs distribution center as the company accelerates efforts to turn around its business and cut costs.
That initial layoff round totals 207 people and is effective Feb. 23, according to a state filing. The second set of cuts at the distribution center total 48 and are expected to be completed March 22.
The two rounds follow Vans’ disclosure this month of 42 positions being cut at its Costa Mesa headquarters by Jan. 30.
Layoffs at Vans and other VF Corp. brands come as the company faces pressure from activist investors after a series of disappointing earnings reports. One activist in particular has accused VF of spending mismanagement and an inefficient organizational structure under former VF CEO Steve Rendle.
VF also owns Supreme, The North Face, Dickies, Timberland, JanSport and other brands.
Bracken Darrell joined VF last year as CEO to help turn the overall business around.
Tough Times
Darrell has so far worked quickly, announcing a turnaround plan aimed at trimming about $300 million in costs. He moved former Vans Global Brand President Kevin Bailey to VF executive vice president and chief transformation officer in October. Darrell is now overseeing the Vans business until a new leader is found.
Bailey went on a press tour last year assuring fashion and footwear reporters of the Vans brand’s strength. He admitted, prior to his rejoining Vans (he also served as president between 2009 and 2016), the company became complacent, relying on its classic styles to drive the business.
“The brand is not broken,” Bailey told Footwear News last March. “Everybody trips up once in a while. Skateboarders fall and cut their knees up. It is what it is. Have we hit a bump in the road? Yes. How much of this was our causing? Nearly all of it.”
The Classics styles did well for Vans during its most recent upswing with broader market trends in its favor. However, consumers have moved on in more recent years, allowing for the explosive growth of performance running brands such as Hoka and On. Both have transcended the core running shoe consumer to also break into fashion, with distribution at retailers such as Anthropologie and Urban Outfitters.
Vans, meanwhile, was tardy to the outdoor party beginning only last year to aggressively market and push styles such as the MTE (Made for The Elements). It has seen initial successes with newer styles, but not enough to move the needle on stemming the declines.
Details on the status of VF’s turnaround efforts and Vans will be reported Feb. 6 during the company’s fiscal third quarter update.
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