Ralph Lauren to cut another 1,200 jobs in savings drive.
Ralph Lauren will cut 1,200 jobs, or 8% of its workforce, as part of a cost-cutting drive. The US fashion brand also planned to close more than 50 stores and simplify its management structure. The new savings will come on top of $125m of cuts made by Ralph Lauren last year. It expected to incur $400m in restructuring charges this year as well as $150m of costs relating to stock reduction. Revenue was expected to fall by a single digit figure in the first quarter and by low double digits for the full year. Shares in Ralph Lauren have fallen by 30% over the past 12 months and shed a further 2% in afternoon trading in New York to $94.38. And on Monday Burberry revealed that chief executive Christopher Bailey had taken a 75% pay cut following a slump in sales. But Ralph Lauren in particular has struggled to match its sales with its stockpiles of clothing and accessories. Over the past three years its sales rose by 7%, but its stock levels increased by 26%.