RALPH LAUREN TO CUT JOBS AS PART OF REORGANIZATION

Ralph Lauren Corporation is taking steps to accelerate its “Next Great Chapter” recovery plan.

Part of the brand’s new plans are to consolidate its global marketing and branding teams and to reorganize its corporate merchandising teams with the goal of having a “simplified organizational structure” in order to lower costs and move more of its business online.

The plan could impact more than 3,700 jobs (about 15 percent of its workforce), which is expected to save the brand approximately $180 million to $200 million.

Ralph Lauren is, however, investing more in its digital transformation as COVID-19 highlighted the importance of streamlined e-commerce operations. New plans include rolling out a cloud-based human resources and planning system globally as well as elevating how it delivers for consumers through its “Digitizing the Value Chain” project. This is a company-wide initiative to simplify ways of working, better connect teams, and digitize the product journey. It will enable faster and more connected decision-making from product design to market.

Ralph Lauren is also continuing to invest in technologies that help deliver an enhanced consumer experience – with new digital capabilities that support areas like omnichannel shopping, personalization, social commerce and augmented reality.

“Over 53 years ago, this company started with a single tie and a dream that made it into a way of life,” said Ralph Lauren, chairman and chief creative officer. “The timeless values we were founded on have propelled us on an incredible journey – one that has seen great challenges and amazing opportunities along the way. Through it all, our commitment to stay true to who we are, while evolving with the world around us, has helped to secure our future and our place as one of the world’s most beloved and inspiring brands.”

“The changes happening in the world around us have accelerated the shifts we saw pre-COVID, and we are fast-tracking some of our plans to match them – including advancing our digital transformation and simplifying our team structures,” added Patrice Louvet, president and chief executive officer. “These steps will enable us to progress our brand elevation journey and deliver Ralph’s vision in today’s dynamic environment – inspiring our consumers around the world and creating value for all of our stakeholders.”

Over the past two fiscal years, the company has made marked progress on its brand elevation journey and the strategic priorities outlined in its Next Great Chapter plan, including to 1) win over a new generation of consumers; 2) energize core products and accelerate high potential, underdeveloped categories; 3) drive targeted expansion; 4) lead with digital; and 5) operate with discipline to fuel growth. In the context of today’s rapidly evolving consumer, industry shifts, and global dynamics, Ralph Lauren is accelerating key areas of the plan, beginning with the implementation of new technology platforms and the simplification of its organizational structure.