Ralph Lauren to incur up to $160 million in charges tied to global workforce cuts

/ / News

Ralph Lauren Corp. announced that it will be cutting its global workforce at the end of fiscal year 2021, which will drive pre-tax charges of $120 million to $160 million. The luxury clothing and lifestyle company did not specify the total number of jobs that will be eliminated, but said it will be reorganizing its global marketing and branding functions as well as creating a Consumer Intelligence and Experience (CIX) organization. The company expects annualized savings of $180 million to $200 million. The move is part of Ralph Lauren’s ongoing reorganization, which has focused on enhancing digital engagement with shoppers and streamlining the business. Ralph Lauren is scheduled to announce its fiscal second quarter earnings on Oct. 29. Ralph Lauren stock has sunk 39.3% for the year to date while the S&P 500 index is up 1.6% for the period.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.