Canada Goose parkas hang on display in a store in Richmond Hill, Ontario.
Chris So | Toronto Star | Getty Images
Canada goose announced Tuesday that it will lay off about 17% of its corporate staff, following a number of other retailers which have laid off staff this 12 months as consumers proceed to tug back on discretionary spending.
It is unclear what number of employees will be laid off. The cuts will affect employees at Canada Goose’s headquarters, which had roughly 915 employees as of April 2023. Between April 2021 and April 2023, Canada Goose nearly doubled the number of employees at its headquarters from 544 to 915 to support its “continued growth,” in line with the filing.
In an announcement on Tuesday, CEO Dani Reiss said: “Today, we are reorganizing our teams to ensure that corporate resources are fit for purpose, enabling us to drive the next phase of growth across all geographies, categories and channels.”
“We are focused on achieving efficiencies and increasing margins while investing in key initiatives – brand, design and best-in-class operations – that strongly position our iconic high-performance luxury brand for long-term growth,” Reiss said.
The cuts are part of the corporate’s ongoing “Transformation Program” and follow a so-called “comprehensive review” of its organizational structure and the roles it needs to attain its goals. It expects the cuts will end in “immediate” savings and simplify the workforce, enabling faster decision-making and greater efficiency.
Shares fell about 7% on this news.
In the three months ended Dec. 31, Canada Goose sales rose 6% from the year-ago period, but the outcomes were below analyst expectations, in line with LSEG, formerly referred to as Refinitiv. In reporting its holiday quarter results, Canada Goose noted that its wholesale revenue was particularly weak, a unbroken momentum for the corporate that was felt by many other retailers.
Several retailers including In armor AND Nikerecently said wholesale orders are slow as malls try to manage inventory and grapple with slowing demand.
Canada Goose layoffs follow Nike, Macy’s, Wayfair, Hasbro AND Etsy all have announced mass layoffs in the previous couple of months. In many cases, corporations have desired to concentrate on what they’ll control, increasing efficiency and specializing in profits, at the same time as customers withdraw from discretionary goods corresponding to clothes, shoes and toys.
