A Canada Goose hoodie is on display at a store in Richmond Hill, Ont.
Chris So | Toronto Star | Getty Images
canada goose The company announced Tuesday it would cut about 17% of its workforce across the company, joining other retailers that have laid off employees this year as consumers continue to cut back on discretionary spending.
It is not clear how many employees will be laid off. The layoffs will affect staff at Canada Goose’s headquarters, which had approximately 915 employees as of April 2023, according to a securities filing. Canada Goose nearly doubled the number of employees at its headquarters from 544 to 915 from April 2021 to April 2023 to support “continued growth,” according to the filing.
In a statement Tuesday, CEO Dani Rees said, “Today, we are ensuring that our company’s resources are aligned with our purpose to drive the next phase of growth across geographies, categories and channels. We are reorganizing the team.”
“We are investing in key initiatives that strongly position our iconic performance luxury brands for long-term growth: achieving efficiencies and profit growth while investing in brand, design and best-in-class operations. “We’re focused on that,” Reese said.
The job cuts are part of the company’s ongoing “transformation program” and come after a “comprehensive review” of its organizational structure and the roles needed to achieve its goals. The company expects the headcount reductions will result in “immediate” cost savings, simplifying its workforce and enabling faster decision-making and efficiency.
The stock price fell about 7% on the news.
LSEG (formerly Refinitiv) said Canada Goose’s sales for the three months ended Dec. 31 rose 6% from a year earlier, but fell short of analysts’ expectations. When Canada Goose released its holiday quarter results, it noted that wholesale revenue was particularly weak, an ongoing situation for the company that is felt by many other retailers as well.
including some retailers under armor and Nikerecently said wholesale orders have slumped as department stores try to rein in inventories and deal with slowing demand.
Canada Goose follows Nike in cutting jobs. Macy’s, wayfair, hasbro and Etsy Both have announced large-scale layoffs in the past few months. In many cases, businesses were trying to focus on what they can control by increasing efficiency and focusing on profits, even as shoppers forego discretionary items like clothes, shoes and toys.
