PVH Corp., the parent company of iconic fashion brands Tommy Hilfiger and Calvin Klein, is undergoing a significant restructuring as part of its ongoing efforts to simplify operations and generate cost savings. In line with its PVH+ strategic plan, the company has announced another round of layoffs, aiming to reduce "people costs" globally by about 10 percent. These measures are expected to result in annual savings of over $100 million. While the company has expressed confidence in its ability to unlock growth potential, the exact details of the layoffs have not been disclosed.

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Streamlining Operations and Cost Reduction

In August of last year, PVH Corp. unveiled its plan to streamline operations, targeting substantial annual cost savings and improved efficiency. The initial phase of these efforts incurred pre-tax severance costs of $20 million. Building on this foundation, PVH is now progressing to the next stage of its restructuring, which involves further headcount reductions. The company has estimated that it will bear approximately $50 million in severance expenses, primarily in the second quarter of 2023. PVH expects to complete most of these actions by the end of the third quarter.

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Supporting Associates Amidst Transitions

Acknowledging the challenging nature of workforce decisions, PVH Corp. has emphasized its commitment to supporting affected associates throughout the transition process. While the specific positions affected and the exact number of layoffs have not been disclosed, the company is dedicated to providing necessary assistance during this period of change. PVH remains confident that these strategic measures will enable the organization to harness untapped growth potential and enhance its competitiveness for the future.

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Unveiling of Additional Changes

Apart from the recent layoffs, PVH Corp. is undergoing other transformations within its organizational structure. Avery Baker, the president and chief brand officer of Tommy Hilfiger Corp., recently resigned, resulting in Martijn Hagman, the CEO of Tommy Hilfiger Global and PVH Europe, assuming a more direct oversight role for the brand. It is important to note that this change is separate from the ongoing streamlining efforts and layoffs.