Canada Goose Cuts 17% of Corporate Workforce, Reorganizes Management, as it Implements Transformation Plan
Canada Goose said on Tuesday that it is cutting approximately 17 percent of its corporate workforce as the company advances its transformation program.
The move comes after the Toronto-based outdoor brand said it conducted a “comprehensive review” of its organizational structure and roles needed to achieve strategic objectives. The company said that the cuts are anticipated to yield immediate cost savings, simplify organizational structure, accelerate decision making and increase efficiencies across its operating platform.
Canada Goose added that it will provide further information on the transformation program and its impacts on its upcoming fourth quarter earnings call in May.
Dani Reiss, chairman and chief executive officer of Canada Goose, said in a statement that while the decision to reduce its workforce was “difficult,” it was the “right decision” to best position the company for the future.
“To those employees who are leaving us, thank you for choosing to spend part of your career at Canada Goose,” Reiss said. “I am personally grateful to each and every one of you and for the contributions you have made during your time with us.”
As part of these cuts, Canada Goose is reworking some of its management organizational structure. Carrie Baker, president of brand and commercial, will expand her role to oversee design in addition to her existing responsibilities. Baker will continue to partner closely with Reiss on continued creative, product and brand evolution, the company said.
Beth Clymer, president of finance, strategy, and administration, will add operations to her responsibilities following the March 19 departure of John Moran, former chief operating officer.
And Daniel Binder, chief transformation officer, will now oversee global stores in addition to his current role, which includes sales planning and operations at Canada Goose.
“Today, we are realigning our teams to ensure that corporate resources are fit for purpose to fuel our next phase of growth across geographies, categories, and channels,” Reiss added. “We are focused on achieving efficiency and margin expansion, while investing in key initiatives – brand, design and best-in-class operations – that will powerfully position our iconic performance luxury brand to deliver long-term growth.”
This news comes a month after the company said it continued to see wholesale declines in its fiscal third quarter — like most of the rest of fashion — but compensated for the weakness with an extra kick from the Asia-Pacific region.
Overall, Canada Goose said net income for the third quarter slipped to 131.4 million Canadian dollars from 137.5 million Canadian dollars. Revenues for the quarter ended Dec. 31 rose 5.8 percent to 609.9 Canadian dollars from 576.7 million Canadian dollars.
For the full year, Canada Goose expects earnings of 82 cents to 92 cents a diluted share, in line with the 60 cent to $1.40 range given in November — but below the $1.20 to $1.48 the company originally forecast.