CEO announces layoffs to steer Canada Goose towards efficiency and scalable growth
Canada Goose Holdings Inc. has announced a 17 percent reduction in its global corporate workforce, a move described by CEO Dani Reiss as essential for the luxury parka maker's next growth phase.
The layoffs aim to position the Toronto-based company for scaling, focusing on efficiency, and enhancing brand, design, and operational initiatives, as reported on BNN Bloomberg.
This decision was shared in a LinkedIn note by Reiss, expressing personal gratitude towards the departing employees for their contributions to the company's success.
Despite the significance of these job cuts, Canada Goose did not specify the number of employees affected. However, Refinitiv's data indicates that Canada Goose employed 4,760 staff as of April 2023.
This workforce reduction follows a challenging winter for the company, marked by delayed parka sales due to unseasonably warm temperatures and a “challenging consumer environment” acknowledged by Reiss during discussions of the company's quarterly performance.
Amidst these challenges, Canada Goose's president of brand and commercial, Carrie Baker, mentioned the possibility of increasing the prices of their luxury parkas, which already have price points around $2,000.
This strategy aims to boost the brand's desirability amidst high interest rates and inflation.
Significant leadership changes accompany these layoffs. Beth Clymer, president of finance, strategy, and administration, has taken on additional operational responsibilities, and Daniel Binder, chief transformation officer, will now also oversee the company's global stores.
These adjustments follow John Moran's departure as chief operating officer on March 19.
Canada Goose described these organizational changes as outcomes of a comprehensive review aimed at achieving strategic objectives. The company anticipates these adjustments will yield immediate cost savings, simplify its organizational structure, and enhance operational efficiencies.
The company plans to release its fourth-quarter and full-year financial results in May, promising to provide more details on its transformation and outlook for fiscal 2025.
