Ralph Lauren plans, after CRV outbreak, to make some investments in digital experience. Yet, the brand has also planned to lay off about 3,700 employees by the end of March 2021 (that is the closing of financial year). The company announced its future strategy, which aims at simplifying its organizational structure and implementing a digital change. They are going to carry out such strategy to overcome Covid-19 detrimental impact and, therefore, get the company ready to face the days to come.
Ralph Lauren plans after CRV
Still Ralph Lauren has not clarified in what divisions they are going to cut jobs. They announced the layoff of 15% of their employees, who currently amount, as reported by Reuters, looking at the group’s latest public statements, to 24,900 units (13,800 of them are employed in the United States). Considering such figures, over 3,700 workers might possibly lose their job. The company estimates that, thanks to the above-mentioned layoffs, they will save, on a yearly basis, 180 to 200 million US dollars gross. On the other hand, una tantum charges to be paid because of layoffs, which will have an effect only on the current business year, to be due at the end of March 2021, will amount to 120 million to 160 million US dollars.
“Changes underway are making faster what used to go on even ahead of the pandemic. We are therefore speeding up with some of our plans: among others, the development of our digital transformation and the simplification of our team’s structures – commented Patrice Louvet, President and Chief Executive Officer of Ralph Lauren –. Such stages will help us make progress along our strategy to upgrade the brand”.
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