The shakeup will result in 160 management roles, approximately 5% of home office headcount, being cut with Victoria’s Secret & Co saying the “simplified leadership structure will streamline operations, collapse silos and allow the company to optimise spend in management roles, enabling reinvestment in growth initiatives.”
Victorias Secret & Co says it will reinvest in non-leadership roles focused on executing the company’s strategic initiatives. The net impact of these decisions will result in an estimated US$40m cost reduction in the run rate of the business on an annualised basis beginning in third quarter of fiscal 2022, it adds.
In conjunction with the reorganisation and reduction in leadership, the company anticipates recording a non-GAAP charge of about $30m in the second quarter of fiscal 2022.
The streamlined organisation will unite the company’s three lines of business (Victoria’s Secret, Pink, and Beauty) as a single, collaborative organisation, enhancing focus on the customer, and positioning resources towards high growth, and high return initiatives.
“Over the last year, we have progressed a thoughtful revolution of our business by redefining the VS brand and rebuilding our strategy for growth. We can now better connect with and represent our millions of customers around the globe. As a result, we have more relevant brand positioning, more compelling merchandise assortments, and a more inclusive culture that celebrates our people. With our brand revolution well underway and gaining momentum, now is the time to reimagine our leadership structure to better align with a shifting consumer landscape and become more efficient as an organisation,”says Martin Waters, Victoria’s Secret & Co CEO.
The shakeup has seen the appointment of executives to three key leadership roles reporting to Waters.
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New Victoria’s Secret and and Pink CEO Hauk has led Pink as CEO since 2018 after a decade of merchandising experience of Bath & Body Works. She will be responsible for integrating merchandising, planning, marketing and creative teams to quickly apply best practices and consumer insights, speed the company’s test and learn agenda and better engage customers across VS and Pink.
Meanwhile, Christine Rupp will join VS&Co as chief customer officer, responsible for creating a seamless store and digital commerce business globally and will be accountable for sales and profitability across both channels.
Greg Unis, who has led the Victoria’s Secret and Pink Beauty businesses since 2016, has been named chief growth officer. In this new role, Unis will be responsible for the VS&Co-Lab platform, new business development, international expansion, as well as mergers and acquisition opportunities. Unis will continue to lead VS&Co’s real estate and store design and construction teams focused on expanding the company’s store of the future initiative.
Last month, Victoria’s Secret announced stable results for the first quarter ended 30 April, with sales results at the high end of its guidance range despite what it described as a ‘challenging inflationary environment’.