Home / Knowledge / News / Apparel/Garments / Levis new initiative to boost cost saving & productivity
Levis new initiative to boost cost saving & productivity
27
Mar '14
Levi Strauss & Co. (LS&Co.) announced a global productivity initiative, which will be executed in phases over the next 12 to 18 months. This initiative, when completed, is expected to generate annualized cost savings in the range of $175-200 million.  
 
The first phase of the program will deliver approximately $75-100 million in annualized savings before restructuring and related charges. Restructuring and related charges of approximately $65 million will primarily be recorded in the first quarter. 
 
In this first phase, LS&Co. expects that it will eliminate approximately 800 positions, or nearly 20 percent of its non-retail and non-manufacturing employee population. The role eliminations reflect a reduction of management layers, an increase in spans of control, the removal of duplicative roles, a regrouping of country clusters and other structural changes. 
 
Final plans will vary by country, and final estimates for headcount, timing and charges in certain areas of the business are subject to completion of applicable local works council and other consultative processes.  
 
As the company continues to work through this initiative, it will redesign a number of key processes that should yield further savings and improve agility. Additional charges will be recorded in future periods. Key areas of focus include: 
-Streamlining the company’s product development, planning and go-to-market strategies 
-Implementing efficiencies across the company’s supply chain and distribution network 
-Adopting lower-cost service-delivery models 
-Continuing to pursue more disciplined procurement practices  
 

Levi Strauss & Co

Must ReadView All

Textiles | On 26th Sep 2016

Azerbaijan pins hope on revival of cotton sector

In the midst of economic problems, Azerbaijan president Ilham Aliyev...

Textiles | On 26th Sep 2016

Aleph unveils new LaForte wide format inkjet printers

Aleph, developer of a complete range of innovative digital printing...

Textiles | On 26th Sep 2016

Hank yarn delivery lead times to handloom sector high: Study

A study has concluded that hank yarn delivered by the National...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

Shawn Honeycutt
Bolger & O'Hearn

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
September 2016

September 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search