Vans owner VF Corp lays off 500 employees in restructuring push By Reuters

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© Reuters. A person walks by a Vans store, a brand owned by VF Corporation, in Manhattan, New York City, U.S., May 20, 2022. REUTERS/Andrew Kelly/File Photo

(Reuters) – Vans owner VF Corp (NYSE:) 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 U.S. retail environment in which customers have been cutting back 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% of its value so far this year, was trading flat after the bell.

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