COLUMBUS (WCMH) — L Brands announced Tuesday it will lay off around 850 employees, 15% of its home office workforce.
The layoffs are part of measures the company hopes will reduce costs by $400 million each year. . Approximately $175 million of savings are expected to be achieved in fiscal 2020.
The company said sales are down 20% compared to the same time last year. That includes a 10% increase for Bath and Body Works stores and a 40% decrease for Victoria’s Secret.
The company is preparing to separate Victoria’s Secret from L Brands and operate it as an independent company.
“The Board and management remain committed to separating the Bath & Body Works and Victoria’s Secret businesses, as well as improving the profitability of the Victoria’s Secret business. During the second quarter, we made meaningful progress toward these goals. Decisions relating to our workforce are incredibly difficult and not taken lightly, but these actions are necessary to best position our company for the long-term. On behalf of the Board and management team, I’d like to extend our deepest appreciation to the impacted associates for their contributions and dedication over the years,” said CEO Andrew Meslow.
L Brands will report second quarter earnings on August 19.