Canada Goose shares drop after plans to cut 17% of corporate workforce

By Robb M. Stewart

Canada Goose shares retreated Tuesday after the Canadian clothing company said it was again chopping head-office jobs in a bid to reduce costs and position for longer-term growth.

Shares (CA:GOOS) fell 6.7% lower at C$15.11 in Toronto, pitching them to a drop of 4% so far this year. On the New York Stock Exchange, the stock (GOOS) fell 6.8% at $11.12, and now it is 6% in the red year to date.

Canada Goose said that as part of a restructuring of its global corporate workforce, it was cutting about 17% of corporate roles. It declined to specify the number of jobs that would be lost, though a spokeswoman said the reduction would be in corporate headquarters and not in areas such as manufacturing or retail sales.

The cutback comes after the company in the second fiscal quarter ended Oct. 1 reduced its global corporate workforce by about 10% in a move it said was aimed at improving workforce efficiencies and reducing labor costs. That move resulted in a restructuring cost of 5.5 million Canadian dollars, the equivalent of roughly $4 million.

Canada Goose said the latest job cuts follow a review of its organizational structure and the roles needed to reach strategic objectives. It is expected to drive immediate cost savings while simplifying the company's structure and accelerating decision-making, it said.

With the job losses, Canada Goose said Carrie Baker, the company's president of brand and commercial operations, will expand her role to oversee design in addition to her existing responsibilities. President of finance, strategy and administration Beth Clymer will add operations to her responsibilities and Chief Transformation Officer. Daniel Binder will now oversee global stores in addition to his current role.

Former Chief Operating Officer John Moran left the company a week earlier.

Canada Goose said it would provide further information about its transformation program when it released its fourth-quarter financial results in May.

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03-26-24 1639ET

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