The Los Angeles Times reported that the more than 160 year old jean maker Levi Straus will be cutting upwards of 800 jobs as part of an effort to cut $ approximately 200 million in costs.
The cuts, which are labeled as a global productivity initiative will take effect over the next 12 to 18 months.
Phase one is expected to result in upwards of $100 million in savings. The job cuts, which will affect 20% of Levi’s non-retail and non-manufacturing employee base, will occur during this period.
The privately held company said it is planning to scale back its management bureaucracy and consolidate recurring positions.
Last month, the company said its net revenue for the fourth quarter ended Nov. 24 slipped slightly year over year to $1.3 billion. Profit tanked to $17 million, from $53 million a year earlier.
In 2013 Levis launched a skate specific jean collection available at select skate shops. The line is competitively priced and is seeing success on the skate retails floor with plans to expand into a more complete apparel line for 2015.