PVH Simplifies, Cutting 4% of Global Workforce

by · WWD
Backstage at Tommy Hilfiger, spring 2027.Nina Westervelt/WWD

PVH Corp. is simplifying to focus on what’s working best — and cutting costs, which will lead to corporate layoffs.

“We expect to reduce our global workforce by about 4 percent, primarily in non-consumer-facing positions, which is around 12 percent of our office-based associates,” said Stefan Larsson, chief executive officer, in a memo sent to employees Thursday morning and obtained by WWD.

The parent company of Calvin Klein and Tommy Hilfiger started the fiscal year off with about 26,000 employees, putting the number of jobs eliminated at 1,040.

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“These are difficult decisions that we do not take lightly. Our colleagues who will be affected have helped build the progress we are proud of today,” Larsson said. “We are committed to treating everyone impacted with care and respect, and providing them with the support, resources and guidance they need to navigate the transition.”

Larsson has been working to transform PVH for some time with a multipronged plan to drive hero products with megawatt marketing and digital savvy while sharpening operations.

“We’ve made real progress together: we divested non-core businesses to fully focus on Calvin and Tommy, strengthened our relevance with younger consumers, built leading social followings and engagement, grown e-commerce and our key product franchises, and started to elevate the shopping experience,” said Larsson, adding that PVH has also “built stronger global capabilities.”

“And we’ve learned something important along the way,” he said. “When we lean in and drive improvements to the consumer offering all the way through to our doors and stores, it works. Consumers respond, and we grow both revenues and margins across both brands and all three regions. The biggest opportunity we have now is to scale what is working across more of the company.”

In the second quarter ended Aug. 2, PVH’s revenues slipped to $2.1 billion, a decline of 3 percent on a constant currency basis — better than the 4 to 5 percent drop the company projected, but in line with analyst estimates.

The company continued to see some green shoots in key areas where adjustments have been made, including Calvin Klein’s underwear and jeans businesses. Tommy Hilfiger has also gained in key categories.

Now, Larsson is trimming down to move quicker.

“To seize this opportunity, as a leadership team, we have come together on the actions that will enable us to fully turn the consumer flywheel — stronger products, stronger consumer engagement, and stronger marketplace execution — by simplifying how we work, scaling and accelerating our successes, and increasing the impact of what we do at every consumer touchpoint,” Larsson said in the memo.

That included three bullet points:

  • Simplifying how the company works.
  • Backing and scaling high-priority growth opportunities.
  • Building a more efficient cost structure.

Changes will start immediately and carry on through the first quarter.

“The world around us will keep changing — what we can control is how we work, where we choose to focus, and how well we deliver for our consumers,” Larsson said. “With our growth plan and through the actions we are announcing today, we are taking our future fully into our own hands. We will simplify how we work, get closer to our key partners and consumers, and accelerate the consumer flywheel across both Calvin and Tommy.”