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Canada Goose Announces 17 Percent Corporate Layoffs

By Nithya Bose in Business News, posted March 27, 2024

Ontario-based retailer Canada Goose is slashing around 17 percent of its corporate positions.

Retailers have been downsizing their staff throughout the year due to declining consumer spending on non-essential items.

The specific number of employees facing layoffs remains undisclosed.

However, the cuts are slated to impact the staff at the company's main office, which, as of April 2023, housed approximately 915 workers, a notable increase from 544 in April 2021.

This expansion was part of Canada Goose's effort to bolster its corporate strength to support its growth ambitions.

Layoffs are part of "Transition Program"

CEO Dani Reiss said, “Today, we are realigning our teams to ensure that corporate resources are fit for purpose to fuel our next phase of growth across geographies, categories, and channels.

“We are focused on achieving efficiency and margin expansion, while investing in key initiatives — brand, design and best-in-class operations — that will powerfully position our iconic performance luxury brand to deliver long-term growth.”

These steps would fortify the company's standing as a leading name in the luxury performance wear sector, ensuring sustainable growth in the future.

The layoffs are part of Canada Goose's "Transformation Program," initiated following an in-depth evaluation of its organizational needs and essential roles moving forward.

The company expects these changes to lead to immediate cost reductions and a more streamlined workforce.

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These measures would facilitate swifter decision-making processes and improved operational efficiency.

Following the announcement, Canada Goose's stock experienced a seven percent decline.

Despite reporting a six percent increase in sales for the quarter ending December 31, the company fell short of market analysts' projections.

It faced a particularly weak performance in wholesale revenues—a challenge not unique to Canada Goose but prevalent across the retail sector.

Major retailers such as Under Armour, Nike, Macy’s, Wayfair, Hasbro, and Etsy have all reported similar workforce reductions recently.

These companies focus on operational efficiency and profitability due to reduced consumer interest in discretionary products like apparel, footwear, and toys.

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