Key TakeawaysShares of Canada Goose dropped Tuesday after the outerwear maker announced job cuts in an effort to improve efficiencies and reduce costs.Canada Goose said it was reducing its corporate employees by 17% after a "comprehensive review" of staffing needed.Canada Goose CEO Dani Reiss called the layoffs the right decision for the business to succeed in the future.
Shares of Canada Goose (GOOS) dropped over 6% Tuesday after the outerwear maker announced job cuts in an effort to improve efficiencies and reduce costs.
The company wrote in a regulatory filing that it was eliminating approximately 17% of its corporate positions. It said the decision came following a “comprehensive review of the organizational structure and roles needed to achieve our strategic objectives.”
CEO Dani Reiss said that Canada Goose was realigning its teams “to ensure that corporate resources are fit for purpose to fuel our next phase of growth across geographies, categories, and channels.” He called the layoffs “the right decision to put our business in the best position in the future.”
As of the end of its 2023 fiscal year last April, the company had 915 corporate employees out of a total headcount of 4,760.
The reductions came as part of the company’s “Transformation Program” launched in April 2023, which included a 10% cut in corporate staff last summer. Canada Goose said the plan was expected to “increase operational efficiencies by optimizing production and procurement, developing people and resources, and focusing on our consumers to allow sustainable growth, profitability and long-term value.”
Shares of Canada Goose finished 6.8% lower at $11.12 Tuesday following the news. They have lost about 3.6% year to date.
