Vans owner VF Corp said on Thursday it has laid off about 500 employees as it aims to restructure its business and improve operations globally.
The company has been struggling to survive a tough US retail environment in which customers have been cutting back on non-essential spending.
It had in October come under pressure from activist investor firms Legion Partners Asset Management and Engaged Capital, which insisted on cost cuts and a halt to acquisitions.
Sales at its Vans brand have been dropping for the last few quarters, with the new CEO Bracken Darrell recently saying that it would not see a turnaround this year.
He had also warned of a large-scale cost reduction program to rebuild its business.
The job cuts took place across all its brands, corporate functions and geographies. VF had about 33,000 employees as of April 1, according to a regulatory filing.
Its stock, which has lost 40 percent of its value so far this year, was trading flat after the bell.
By Annett Mary Manoj and Kate Masters
Learn more:
What Is VF Corp.’s Plan for Vans and Its Other Struggling Brands?
Activist investors are demanding big changes at the fashion conglomerate, which also owns The North Face, Supreme, Timberland and other brands. The company will have a chance to lay out its own vision when it releases earnings this week.
