L Brands to Cut 850 Jobs

The company is aiming to generate $400 million in annualized cost savings
Posted July 29, 2020

L Brands (Columbus, Ohio) is cutting 850 home office associates in an aim to generate $400 million in annualized cost savings, Retail Dive reports. Roughly $175 million is expected to be achieved in fiscal 2020, the company said in a press release.

Management changes as well as alterations to Victoria’s Secret’s labor model will also be used to reduce store selling costs, according to L Brands and Retail Dive. The company also said it’s “working to reduce operating losses in company-owned businesses in the U.K. and China.”

It’s reported that the company is also working with its suppliers in order to reduce merchandise costs and manage inventory in an attempt to boost merchandise margin rates at Victoria’s Secret.