The parent company of Victoria’s Secret is trimming its corporate headcount as part of a larger $400M cost reduction plan.
The company, which also owns Bath & Body Works, is reducing its home office headcount by approximately 15 per cent, or about 850 associates. The layoffs follow what L Brands says was a review of its home office organisations to reduce overhead expenses and decentralise shared functions and services in order to establish Bath & Body Works as a pure-play public company and prepare Victoria’s Secret (including Victoria’s Secret Beauty and Pink) to operate as a separate, standalone company.
The cuts in staff are part of a larger $400M cost reduction program with which L Brands expects to generate approximately $175M of savings in fiscal 2020. The plan also includes the previously announced closing of 250 Victoria’s Secret stores while negotiating with landlords for ongoing rent relief.
“Decisions relating to our workforce are incredibly difficult and not taken lightly, but these actions are necessary to best position our company for the long-term,” said Andrew Meslow, CEO of L Brands.
