// Ralph Lauren plans to reduce global workforce to create a “flatter team structure”
// The company will reorganise its corporate merchandising teams
Ralph Lauren is considering reducing its global workforce as it plans to roll out improved technology platforms to support its worldwide operations.
The premium fashion retailer said it also plans to create a “flatter team structure” by consolidating its global marketing and branding functions.
It will create a new consumer intelligence and experience department, and reorganise its corporate merchandising teams.
READ MORE: Ralph Lauren revenue drops by £750m
It will also be launching a global cloud-based HR and planning system as well as improving deliveries to consumers through its Digitising the Value Chain project.
The project aims to simplify ways of working, improve how teams work together and digitise the product journey.
“The changes happening in the world around us have accelerated the shifts we saw pre-Covid, and we are fast-tracking some of our plans to match them – including advancing our digital transformation and simplifying our team structures,” Ralph Lauren president and chief executive Patrice Louvet said.
“These steps will enable us to progress our brand elevation journey and deliver Ralph’s vision in today’s dynamic environment – inspiring our consumers around the world and creating value for all of our stakeholders.”
Last month, Ralph Lauren saw its quarterly revenue plummet by nearly $1 billion (£750 million), as the coronavirus pandemic led to store closures and a slowdown in demand for luxury and premium goods.
According to GlobalData, Ralph Lauren is more exposed to the pandemic than other fashion retailers as its jackets, coats and dresses are designed for social or formal occasions.
Ralph Lauren’s net revenue fell 66 per cent to $487.5 million (£366.5 million), missing analysts’ average estimate of $615 million (£462.4 million).
Ralph Lauren posted a net loss of $127.7 million (£96 million) in the first quarter ended June 27, compared with a profit of $117.1 million (£88 million) a year earlier.
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