North Face Brand Owner VF To Slash 500 Jobs: Report

BY Benzinga | ECONOMIC | 12/01/23 06:32 AM EST

VF Corp (VFC) , the parent company of popular brands such as North Face, has reportedly terminated approximately 500 of its salaried staff.

This move comes as part of the company's new strategy focused on cost reduction and debt management in the face of declining sales in North America, reported Bloomberg.

This slump is largely attributed to the underperformance of its Vans brand, among others in its portfolio.

The company has also been facing pressure from two activist investor groups, one of which has been advocating for brand divestitures and debt repayment, the report added.

In response to its current challenges, VF Corp (VFC) withdrew its fiscal year guidance in October and unveiled a transformation plan.

As of April, VF Corp. (VFC) employed 33,000 individuals, with 60% being full-time workers.

"While these decisions are never easy, they will give us the financial flexibility to invest behind our brands and better position us for long-term growth," Bloomberg quoted a spokesperson for the company.

Price Action: VFC shares closed lower by 2.34% at $16.73 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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