PVH Corp To Reduce Global Headcount By 4%; Plans To Achieve At Least $100M Of Pre-Tax Cost Cuts, Including $45M Of Anticipated Annualized Run Rate Savings
Benzinga Newsdesk 4 hours ago
News
On November 12, 2026, PVH Corp. (the "Company") launched a global enterprise-wide initiative to accelerate the execution of its strategic priorities, improve productivity, and strengthen long-term growth and
On November 12, 2026, PVH Corp. (the "Company") launched a global enterprise-wide initiative to accelerate the execution of its strategic priorities, improve productivity, and strengthen long-term growth and profitability. The initiative is designed to scale progress made on the Company’s multi-year strategy.
Over the last several years, the Company has: divested non-core businesses to focus on Calvin Klein and TOMMY HILFIGER; strengthened relevance with Gen Z and young millennial consumers; established leading social followings and engagement; grown e-commerce and key product franchises; begun to elevate the shopping experience; and built global capabilities across supply chain, technology and people. With this stronger foundation in place, beginning immediately, the Company will:
●Simplify ways of working through reducing organizational layers and duplicative work; clarifying accountability; and empowering teams to make decisions faster. This will bring teams closer to consumers and key wholesale partners, increase speed-to-market, and help deliver a stronger, more consistent global consumer offering.
●Invest in and scale high-priority growth opportunities including product innovation, consumer insights, digital commerce, supply chain, and technology.
● Build a more efficient and sustainable cost structure that enables the Company to scale improvements in the consumer experience more effectively and focus resources where they may have the greatest impact on Calvin Klein and TOMMY HILFIGER.
As part of the initiative, the Company plans to execute:
●Workforce changes. The Company expects to reduce its global workforce by approximately 4%, primarily in non-consumer-facing positions, which is around 12% of its office-based associates. The Company is beginning to action some of these changes immediately; the remaining actions are expected to occur in the first quarter of 2027.
●Cost savings. In fiscal 2027, the Company plans to achieve at least $100 million of pre-tax cost reductions through people and non-people savings, net of strategic investments in growth priorities. This includes the $45 million of anticipated annualized run rate savings discussed on the Company’s second quarter 2026 earnings call. Beginning in fiscal 2028, the Company plans to realize the full net pre-tax annualized cost savings from the initiative, projected to be at least $150 million. The financial impact on fiscal 2026 is anticipated to be negligible.
le actions, is expected to be completed by the end of fiscal 2027. Because the Company’s plans are subject to consultation, legal requirements and subsequently completing its analysis of related costs, the Company is currently unable to make a good faith determination of the pre-tax restructuring costs and the related cash expenditures expected to be incurred in connection with these actions. Such costs, consisting principally of severance and related costs, will be excluded from the Company’s results on a non-GAAP basis. The Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of this initiative. The Company will file an amendment to this report once it makes a determination.