This famous US company confirms the worst rumors: More than 400 layoffs

In recent weeks, the business world has been engulfed in rumors about staff cuts at a renowned American company. These speculations had created uncertainty among employees and in the market in general. The expectation grew until the company finally decided to confirm what many feared.

The firm in question is VF Corporation, which owns some of the most iconic brands in the fashion and sports sector, such as The North Face and Vans. The firm has confirmed that it will carry out a new round of layoffs, affecting more than 400 employees in different parts of the world. This announcement not only puts an end to the rumors but also highlights the intensity of the restructuring the company is undergoing.

Reorganization strategy and staff adjustment

VF Corporation's restructuring is not new, as the company has made several adjustments in recent years to adapt to a rather changing market. This round of layoffs aims to reorganize the company's business functions to align them with a new strategy that gives greater weight to the direct-to-consumer (D2C) channel. Consequently, VF seeks to reduce its reliance on the wholesale model, intending to strengthen its direct relationship with customers.

This adjustment in the company's structure is a response to the challenges of the global market, according to Footwear News. VF had already closed one of its distribution centers in the United States in November 2023, resulting in the loss of 242 jobs.

This was followed by previous layoffs in 2023, affecting 500 employees, and another 600 cuts made in 2022. All these changes reflect the company's effort to improve its efficiency and competitiveness in an increasingly challenging economic environment.

Mixed financial results and brand performance

Despite the restructuring and layoffs, VF Corporation's financial results show a mixed situation. During the first nine months of 2024, the company experienced a 2% drop in sales, reaching $2.833 billion. However, the company managed to emerge from losses and recorded a net profit of $167.8 million, marking a positive change compared to previous years.

The North Face remains VF Corporation's main source of income, with sales of $1.253 billion and a 5% growth compared to the previous year. On the other hand, Vans, one of the key brands in the company's portfolio, experienced a 9% drop in sales. This brand performance underscores VF's difficulties in keeping its financial stability while continuing its internal restructuring.