North Face Brand Owner VF To Slash 500 Jobs: Report
Portfolio Pulse from Shivani Kumaresan
VF Corp (NYSE:VFC), owner of North Face, is cutting 500 salaried jobs as part of a new strategy to reduce costs and manage debt amid declining North American sales, particularly due to the underperformance of its Vans brand. The company, facing pressure from activist investors, withdrew its fiscal year guidance in October and initiated a transformation plan. VF Corp employs 33,000 people, with 60% in full-time positions. The job cuts are aimed at providing financial flexibility and positioning the company for long-term growth. VFC shares dropped 2.34% to close at $16.73 on Thursday.
December 01, 2023 | 11:32 am
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VF Corp is reducing its workforce by 500 to address cost concerns and debt management, following sales decline and pressure from activist investors. The company is refocusing for long-term growth.
The job cuts at VF Corp are a direct response to financial pressures and declining sales, indicating a potential short-term negative sentiment among investors. The stock price already reflected a downturn on the announcement day, and the news could continue to weigh on investor confidence in the short term. However, the long-term impact may be more positive if the restructuring leads to improved financial health.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100