PVH to cut about 4% of workforce in global restructuring push
PVH plans to cut its global workforce by about 4% and expects at least $100 million in fiscal 2027 pre-tax cost reductions, rising to at least $150 million from fiscal 2028.
Key takeaways
- PVH Corp. (PVH) launched a global initiative to improve productivity and growth. The company plans to reduce its global workforce by approximately 4%, primarily in non-consumer-facing roles, and expects at least $100 million in fiscal 2027 pre-tax cost reductions, rising to at least $150 million from fiscal 2028. Restructuring costs have not yet been determined.
PVH Corp. (PVH) launched a global initiative to speed up its strategic priorities, improve productivity and strengthen long-term growth and profitability.
Shares were little changed at 9:38 a.m. ET, from a $92.02 close.
The initiative scales progress made on its multi-year strategy, including divesting non-core businesses to focus on Calvin Klein and TOMMY HILFIGER and growing e-commerce and key product franchises.
Workforce and cost plans
PVH expects to reduce its global workforce by about 4%, primarily in non-consumer-facing positions. That is about 12% of its office-based associates.
Some changes begin immediately. The remaining actions are expected in the first quarter of 2027.
In fiscal 2027, the company plans to achieve at least $100 million of pre-tax cost reductions through people and non-people savings, net of strategic investments in growth priorities. This includes $45 million of anticipated annualized run rate savings.
Beginning in fiscal 2028, the company plans to realize full net pre-tax annualized cost savings of at least $150 million. The fiscal 2026 financial impact is negligible.
Strategy and timing
The initiative will simplify ways of working by reducing organizational layers and duplicative work. It will also invest in high-priority growth opportunities, including product innovation, consumer insights, digital commerce, supply chain and technology.
The initiative, including non-people actions, is expected to be completed by the end of fiscal 2027.
Restructuring costs
The company is currently unable to make a good faith determination of the pre-tax restructuring costs and related cash expenditures. Those costs, consisting principally of severance and related costs, will be excluded from results on a non-GAAP basis.
The company may incur other charges or cash expenditures due to unanticipated events. It will file an amendment to its report once it makes a determination.