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Canada Goose has revealed plans to reduce around 17% of its global corporate staff, affecting a large chunk of its workforce consisting of 915 individuals. The decision comes at a difficult time for the retail sector, as consumer spending on discretionary items declines.

Canada Goose Confirms Massive Layoffs

The layoffs, representing about 156 jobs, are part of Canada Goose's efforts to rein in costs as demand for high-end goods in the United States remains under pressure. According to its annual report, the luxury parka maker's corporate head offices had employed 915 workers as of April 2023.

CEO Dani Reiss emphasized the necessity of realigning teams to ensure corporate resources are optimized for the brand's growth across various markets and channels.

"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," Reiss said in a statement.

Major Retailers Hit by Layoffs

CNBC notes that the decision to streamline the workforce follows a trend observed among retailers such as Macy's, Nike, and Wayfair, which have initiated layoffs in response to shifting consumer behavior.

Shares of Canada Goose dropped nearly 3% on the announcement, reflecting investor concerns about the ongoing restructuring efforts. Over the past year, the company's stock has declined about 34%.

In the face of declining luxury demand in North America, Canada Goose reported a 14% slump in quarterly revenue from the region in February. The company also noted challenges in key markets like China, which are not immune to the soft global macro-environment.

This move by Canada Goose underscores a broader trend observed across various industries. Companies ranging from tech majors to retailers are announcing layoffs to optimize operations and focus on profitability. Estee Lauder, Levi Strauss & Co., and Nike are among the retail majors recently announcing similar measures.

In addition to the layoffs, Canada Goose announced internal role expansions for key executives, including Carrie Baker, who will oversee brand and commercial functions alongside design, and Chief Transformation Officer Daniel Binder, who will take on additional responsibilities in overseeing global stores.

Despite the challenges the retail sector faces, Canada Goose remains committed to its long-term growth strategy. The company aims to achieve efficiency and margin expansion while investing in key initiatives such as brand enhancement, design innovation, and operational excellence.