Levi’s UK operations have seen a significant reduction in workforce, with over 200 jobs cut during the latest financial year. This move comes despite a notable increase in pre-tax profit and sales for the iconic denim brand. The company’s Northampton-based division reduced its headcount from 1,857 to 1,630 by the end of November 2024.
Key Takeaways
- Levi’s UK reduced its headcount by over 200 employees in the financial year ending November 2024.
- Pre-tax profit rose from £7.7m to £9.5m, and sales increased from £89m to £96.8m during the same period.
- The company cited shifting consumer behaviour towards outlets and a focus on expanding womenswear and premium denim.
Financial Performance and Workforce Reduction
Despite the workforce reduction, Levi’s UK reported a healthy financial performance. Pre-tax profit saw an increase from £7.7 million to £9.5 million. Concurrently, sales experienced a rise, growing from £89 million to £96.8 million over the financial year ending November 30, 2024. The cuts represent a reversal of hiring trends from the previous year.
Strategic Outlook and Consumer Trends
A statement from the board indicated that improved service levels are expected to bolster customer confidence in 2025. The company acknowledged a trend of "bargain hunting" by price-sensitive consumers, leading to increased traffic at outlet stores rather than mainline retail locations. Levi’s views its outlet business as a highly professionalised and profitable model with significant opportunities.
Marketing and Future Investments
To counter the impact of promotional activities and changing consumer habits, Levi’s has partnered with global brand ambassador Beyoncé for a year-long marketing campaign launched in 2024. This initiative aims to boost brand awareness and potentially reduce reliance on offline and online promotions. Looking ahead, Levi’s five-year plan includes strategic expansion in its womenswear and tops categories, alongside increased investment in premium denim products and enhanced production flexibility.
Sources
- Levi’s cuts 200 roles despite profit boost, Retail Gazette.
