As Michelle Gass readies to formally take the reins on Jan. 29, Levi Strauss & Co. has announced a “multi-year global productivity initiative,” dubbed Project FUEL, that is designed to accelerate the company’s long-term profitable growth. The first phase of what is expected to be a two-year optimization effort will see a 10% to 15% reduction of Levi’s global corporate workforce that will take place in the first half of 2024.
The initiative also will include optimizing the company’s operating model and structure; redesigning business processes; and identifying opportunities to reduce costs while simplifying processes as the company continues to focus on its previously announced “Brand Led” and “DTC First” strategies. Levi’s expects to generate net cost savings of $100 million in fiscal year 2024 as a result of these efforts, although the layoffs in the first quarter are expected to result in one-time restructuring charges of $110 to $120 million.
