Levi Strauss Lays Off 700 Amid Coronavirus Pandemic

SAN FRANCISCO, CA — Levi Strauss & Co announced plans Tuesday to reduce their corporate — meaning non-retail and non-manufacturing — headcount by about 700 positions. That accounts for roughly 15 percent globally of the San Francisco-based company's corporate workforce.

The Q2 results highlight what the company called in a media release as a "difficult external environment we’ve been navigating the last several months." The company reported the majority of its owned-and-operated and franchise stores, as well as wholesale partners’ stores, were closed for 10 out of the 13 weeks due to the COVID-19 pandemic.

"Although our online sales accelerated, it was not nearly enough to offset the revenue impact of closed doors," according to a statement from the company.

Currently, 90 percent of the company's stores have now reopened around the world, as well as most of franchise and wholesale partner doors. However, traffic and revenues continue to lag behind prior year.

"We expect that a full recovery to pre-COVID levels of revenue will likely take some time and, as a result, we must aggressively cut costs in some areas so we can continue to invest in building our brands and driving growth," according to the company.

Though the specifics will vary by country, but most departing employees will receive severance packages and notice periods— including paid nonworking time, in some cases.

— By Rebecca Collet