Ralph Lauren to cut jobs in the pursuit of profitability

New York - Ralph Lauren Corp. is set to make a number of job cuts as part of its 'Way Forward Plan', as the company aims to secure sustainable and profitable sale growth for the future, while creating long-term value for its shareholders.

While the exact number hasn't been revealed, cuts are expected through the organizations, and store closures are on the way as well. The cuts are expected to impact up to 10 percent of the workforce. Several longtime company executives could be affected.

Stefan Larsson, the chief executive officer and president of the company, plans to outline his multi-year strategic plan today at an Investor Day for analysts. Called The Way Forward Plan, the company is moving forward with this business plan that will help them get closer to their consumers, cut costs, and improve revenue.

“We have assessed every value-creating component of the Company and, with our Way Forward Plan, we will build on our strengths, refocusing on our core brands and instilling a financial discipline that is highly focused on return on investment,” said Stefan Larsson, president and chief executive officer, in a press release. “We have a powerful, authentic brand with unique elasticity, and we will bring our Company to a stronger place than ever before by connecting our brand voice more closely to consumers and evolving our operating model. Our multi-year growth plan will lead Ralph Lauren – one of the few truly iconic brands in the industry – to profitable sales growth and long-term shareholder value creation.”

Ralph Lauren has declined to comment on the job cuts.

Ralph Lauren formulating new strategies for business to cut costs

Job cuts are seen as a bigger part of Larsson's restructuring plan to help modernize the company. This latest round of job cuts would come after last years 5 percent reduction in their workforce, which resulted in a loss of 750 jobs. Those cuts are expended to reduce costs by 125 million dollars. The company took total charges of 142 million dollars during fiscal year 2016, and plans to incur additional charges of about 5 million dollars during fiscal year 2017.

For the year ended April 2, the company's net income declined 43.6 percent to 396 million dollars on a 2.8 percent decrease in total revenues of 7.41 billion dollars.

At the end of March 2015, the company reportedly had 25,000 employees, consisting of 15,000 full-time staffers, and 10,000 part-time workers. 15,000 are located in the U.S., while 10,000 are located over seas.

Currently, the company has 493 directly operated stores, including 144 Ralph Lauren stores, 77 Club Monaco stores, and 272 Polo Factory stores.

image via ralphlauren.com