Luxury parka maker Canada Goose laying off 17% of staff

Luxury parka maker Canada Goose is undergoing significant changes as it announces a reduction in its workforce by 17%. CEO Dani Reiss conveyed this decision through a note on LinkedIn, explaining that these layoffs aim to streamline operations and enhance the company's focus on crucial brand, design, and operational strategies. Despite the necessity of these actions for future growth, Reiss expressed sadness over bidding farewell to individuals who played vital roles in shaping Canada Goose's success.

The exact number of employees affected by these layoffs was not disclosed by the company. However, data from financial markets firm Refinitiv indicates that Canada Goose employed 4,760 staff as of April 2023. This reduction in workforce comes at a challenging time for the company, following a difficult winter season marked by unusually warm temperatures delaying the start of the traditional parka purchasing period.

During discussions on the company's financial performance, executives acknowledged the impact of these external factors on consumer behavior. Carrie Baker, the company's president of brand and commercial, revealed considerations of potential price hikes amidst high interest rates and inflation, aimed at maintaining the desirability of Canada Goose's luxury brand.

In response to these challenges, organizational changes were implemented within Canada Goose. Carrie Baker's role was expanded to include design responsibilities, while Beth Clymer assumed additional operational duties previously managed by John Moran, the former chief operating officer who departed from the company in March. Furthermore, Daniel Binder, appointed as chief transformation officer, now oversees the company's global stores.

Canada Goose justified these organizational adjustments as a result of a comprehensive review aimed at achieving strategic objectives. The company anticipates immediate cost savings, simplified organizational structure, expedited decision-making processes, and enhanced operational efficiency as outcomes of these changes.

Looking ahead, Canada Goose plans to unveil its fourth-quarter and full-year financial results in May, providing further insights into its transformation efforts and outlining its outlook for fiscal 2025. As the company navigates through these transitions, it remains committed to sustaining its position as a leading luxury outerwear brand in the global market.