PVH said the enterprise-wide programme will cut layers of management and eliminate duplicative roles to speed up decision-making and bring teams closer to consumers and major wholesale partners.
The company confirmed the cuts will primarily affect non-consumer-facing roles. The cut roles represent about 12% of PVH’s office-based workforce.
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Some of these changes are already in progress, with the remaining actions scheduled for completion by the end of the first quarter of 2027.
Alongside workforce reductions, PVH also plans to reduce pre-tax costs by at least $100m in fiscal 2027, drawing from both workforce and operational efficiencies, while continuing to invest in strategic growth areas.
From fiscal 2028 onward, PVH targets at least $150m in yearly net pre-tax cost savings as a result of the initiative. The company expects the initiative to have a “negligible” effect on its fiscal 2026 financial results.
Savings will come from both personnel and non-personnel efficiencies, offset by ongoing strategic investments in product innovation, consumer insights, digital commerce, supply chain and technology.
The restructuring, including the non-people actions, is expected to be finalised by the end of fiscal 2027.
PVH has indicated it is still assessing the overall pre-tax costs related to the programme, such as severance and associated expenses, which will be excluded from its non-GAAP financial results.
The company notes that actual costs may vary as a result of consultations, legal requirements and final analysis.
The announcement follows PVH’s report of a $103m net loss for the second quarter, a reversal from a $224m profit in the same period last year.
The loss was attributed to a revenue decline, falling from $2.2bn to $2.1bn, and impairment charges totalling $436m related to goodwill and intangibles.
PVH stated that, despite recent financial challenges, it had made headway in focusing on its core brands, growing its e-commerce business, and building digital and supply chain capabilities.
The company said it intends to build on this foundation by further investing in high-priority areas while reducing costs and increasing operational efficiency.
