US apparel giant Ralph Lauren Corp. is restructuring its global operations for sustainable long-term growth. And the brand will reduce 15% of its workforce along to reassess the company’s cost structure, focusing on team organizational configuration, real estate footprint including distribution centers and corporate offices, and its brand portfolio.
During Ralph Lauren’s review in its first-quarter call in August, it decided to streamline 15% reduction in its workforce, or about 3,600 employees from a total headcount of 24,000. The reductions in its global workforce is expected to be completed by the end of Fiscal 2021.
Earlier, President and CEO of Ralph Lauren Patrice Louvet said the firm was taking the opportunity during the disruption to accelerate its core strategic focus areas and “realign our resources accordingly.”
It also said recently that its ‘Fiscal 2021 Strategic Realignment Plan’ will add future additional actions connected with initiatives.
Additionally the $6.16 billion apparel giant will include a number of enhancements to its technology platforms, in addition to creating a flatter team structure that consolidates its global marketing and branding functions.
New initiatives include the creation of a new Consumer Intelligence and Experience organization focused on leveraging consumer insights and predictive analytics to drive personalized consumer experiences at scale, as well as reorganizing retail’s corporate merchandising teams.
Ralph Lauren said it also continues to integrate Global Citizenship and Sustainability into every aspect of its business, “making it a key responsibility for all leaders.”
More prominently the company is also transforming its operation process with new technology platforms across several key areas of its business, including a cloud-based human resources and planning system and uplifting how it delivers for consumers through its company-wide Digitizing the Value Chain project to better connect teams and digitize the product journey to enable faster decision-making from design to market.
The goal of the changes is to support and uplift the Ralph Lauren vision and voice globally, along with maintaining strong local competences and expertise, as well as enable robust consumer insights and empowering teams to make faster decisions.