An American fashion company has to fire almost 4,000 employees to save money.
The reduction process is expected to be completed by April 2021, just before the end of the current fiscal year. The company plans to reduce at least 15% of the jobs created in the next five years, saving about $180 million per year. At the same time, the company expects to begin receiving such savings in the 2022 fiscal year.
Ralph Lauren took such extreme measures because of the difficulties caused by the situation around the world. The forced downtime of the brand's stores during the pandemic led to significant financial problems. The company's management is taking all possible measures to save money and survive such a difficult period.
By early 2020, Ralph Lauren employed about 24.9 thousand people worldwide, 13.8 thousand - in the United States. As a result of mass layoffs, about 3.7 million people will lose their jobs. It will cost the company $120-160 million.
Ralph Lauren is not the first large American company forced to carry out mass layoffs. Earlier on, the need for such measures has already stated such giants as Ford Motor Co., AP Moller-Maersk A/S, and United Airlines Holdings Inc.
Photo credit: depositphoros.com.