Levi Strauss & Co., one of the world's most famous fashion brands, is laying off over one hundred employees at their California office.
The company, known for its iconic blue jeans, announced 146 employees would be cut from their San Francisco headquarters.
California staff cuts are unlikely to be the last — the company previously announced more widespread terminations are on the horizon.
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Levi has previously speculated that it will cut between 10% and 15% of its world-wide workforce in the first half of 2024.
The cuts are part of the company's global productivity initiative and are expected to take place over the first half of the year under incoming CEO Michelle Gass.
The company is trying to rapidly tighten its belt as it contends with macroeconomic challenges and ongoing issues within its U.S. wholesale business.
LEVI'S TO CUT UP TO 15% OF GLOBAL WORKFORCE
"There's been a lot of volatility this past year, some in our control, some outside. And so we are taking a cautious approach as we look forward," Gass said in an earnings call with analysts.
The company has 20,000 employees globally, about 5,000 of whom are corporate employees. This means the layoffs will impact between 500 and 700 people.
The company hasn't confirmed which departments or regions will be impacted.
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At the same time the expectations of worldwide terminations was announced, Levi Strauss & Co. also agreed to a $170 million deal to keep the company's name on the San Francisco 49ers stadium in Santa Clara. The agreement extends all the way until 2043.
Gass was tapped to take over Levi's in November 2022 and assumed the role of president during the transition process. During that time, she worked closely with the company's executive leadership team and current CEO, Chip Bergh.
Fox Business's Daniella Genovese contributed to this report.
