Levi Strauss cutting at least 10% of corporate jobs, part of ‘Project FUEL’

Denim giant Levi Strauss & Co. (Levi Strauss) is planning to eliminate 10 to 15 per cent of its global corporate workforce.

What’s happening at Levi Strauss?

In its Q4 2023 earnings release, Levi Strauss announced that its board of directors endorsed a global productivity initiative called “Project FUEL.”

“This is expected to be a two-year initiative with a focus on optimizing the operating model and structure, redesigning business processes, and identifying opportunities to reduce costs while simplifying processes across the organization,” the release reads.

The job cuts, which are part of the “first phase” of Project FUEL, are expected to take place in the first half of the year.

“As a result, [we expect] to record estimated restructuring charges of $110 to $120 million in the first quarter,” the company said.

“Additional restructuring charges may be incurred as [we progress] further with this initiative.”

It remains unclear if any Canadian workers will be let go as Levi Strauss scales back its corporate staffing levels.

As of November 2023, the company reportedly employed a total workforce of more than 19,000 people.

Termination agreements for Levi Strauss employees

In Canada, non-unionized employees at Levi Strauss are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before you accept any severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what the Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements during a recession

Major layoffs continue

Levi Strauss isn’t the only major employer reducing their workforce in 2024.

Other big names, including Microsoft, Rona, eBay, Brex, Wayfair, Amazon, YouTube, Newell Brands, Instagram, Universal Music Group, Citigroup, BlackRock, and Indigo, have also pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• Cloudflare, Discord workers post layoffs online: Employee rights
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.