Wolverine Worldwide, a global marketer of branded footwear, apparel and accessories, laid off an undisclosed number of employees last week. This was done to save US $ 30 million next year. As per the company, laying off workers and reorganising its operations can enable it to save overall US $ 45 million in the upcoming year. It is also in the process to implement supply chain cost initiatives which could help in saving another US $ 20 million in 2023.
Brendan Hoffman, Wolverine Worldwide’s President and CEO, in a statement, said, “These decisions, particularly those related to our impacted team members, were not taken lightly. We greatly value the contributions of our talented colleagues and are committed to supporting impacted team members in their transitions.”
According to the official statement, this decision has been taken to not only cut costs but also to improve profitability and restore Wolverine as a best-in-class brand house. As per its third quarter earnings reported earlier this month, Wolverine’s active and work divisions saw 13 per cent and 11.2 per cent growth respectively while its lifestyle division has seen a dip of 6.9 per cent. Hoffman though said in a statement that the revenue growth was short of the company’s expectations due to supply chain issues, more promotional activities and deteriorating macro conditions.
Hoffman even talked about the congestion they have been facing in their US distribution centres and inland transportation networks and how many of their wholesale customers are currently dealing with heavier inventories and warehouse constraint.
