Canada Goose Lays Off 17 Percent of Its Corporate Workforce
Luxury outerwear company Canada Goose has reduced its corporate workforce by 17 percent.
The Toronto-based company did not specify the total number of employees impacted by what it described as a “redesign of our global corporate workforce as part of our ongoing transformation program.”
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As of April 2023, Canada Goose reportedly had a 4,760-person staff, according to Refinitiv.
In an interview with WWD in February, chairman and chief executive officer Dani Reiss described the consumer environment as “lukewarm.” Like many brands that cater to cold-weather enthusiasts, Canada Goose’s sales have been tempered by unseasonably warm temperatures in the U.S. this past winter.
Revealing the news of the layoffs in a statement Tuesday, Canada Goose highlighted its plans to invest in the brand, design and best-in-class operations. The company said the realignment “will yield immediate cost savings, simplify organizational structure, accelerate decision making and increase efficiencies across our operating platform. Moving forward, cross-functional teams will be integrated, and business activities will be aligned to our go-forward strategy.”
The company also released a few changes at the senior executive level. Carrie Baker, president brand and commercial, will take on an expanded role by overseeing design. Beth Clymer, who officially took on a new role at the company in January as president of finance, strategy and administration, is now also adding operations to her responsibilities.
In addition, John Moran, the company’s former chief operating officer, exited March 19. In turn, Dan Binder, who joined the brand full time last spring as chief transformation officer, will now oversee global stores.
Reiss said Tuesday in a statement, “Today, we are realigning our teams to ensure that corporate resources are fit for purpose to fuel our next phase of growth across geographies, categories and channels. We are focused on achieving efficiency and margin expansion, while investing in key initiatives — brand, design and best-in-class operations — that will powerfully position our iconic performance luxury brand to deliver long-term growth.”
He continued, “While the decision to reduce our workforce was difficult, it was the right decision to put our business in the best position for the future. To those employees who are leaving us, thank you for choosing to spend part of your career at Canada Goose. I am personally grateful to each and every one of you and for the contributions you have made during your time with us.”
Canada Goose will report its full results for the quarter and the year ending March 31 on its May earnings call.
In revealing fiscal third-quarter results in February, the company said it had continued to see wholesale declines, due partially to a lack of wintery temperatures at the start of the season. Canada Goose’s total wholesale sales for that quarter fell by 28.5 percent to 81.8 million Canadian dollars, while direct-to-consumer sales through the brand’s website and its own stores rose 14.2 percent to 514 million Canadian dollars.
“The weakness in wholesale is thematic in the industry. Holiday was a very highly promotional environment” with sales being driven by price promotions, Reiss told WWD in February.
For that quarter, sales in the U.S. decreased 13.8 percent to 157.5 million Canadian dollars.
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