Ralph Lauren, the American fashion giant, has already started speeding up its revamping efforts and in this process has announced that it will be shifting more towards e-commerce.
The move will, reportedly, cut down its workforce by as much as 15 per cent – now that would mean around 3,700 of its workers going jobless.
The entire process of minimising the workforce is expected to conclude by the end of March 2021.
In a statement released to media, Ralph Lauren said that the decision will result in pre-tax charges of around US $ 120 million to US $ 160 million.
Importantly, the yearly saving starting from the next fiscal could be somewhere around US $ 200 million.
The last two quarters have been, expectedly, very disappointing for the fashion retailer and restructuring is the only way to combat and overcome the COVID-19-induced crisis – as is the case with most of the fashion retailers in the US.
Also Read: Ralph Lauren plans restructuring following a difficult last quarter
Focusing majorly on e-commerce business and bringing down the workforce are just two measures initiated by the retailer to speed up its revamping efforts.
Its Q1 e-commerce sales had grown by just 3 per cent and the retailer has been working hard lately to define a customer base that is more high-end than the current one.
Also Read: Ralph Lauren to pursue higher margin customers; to reduce wholesale distribution
Ralph Lauren is known for producing products ranging from mid-size to luxury segments.
