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.
Ralph Lauren said the measures should save between $180m (£1235m) and $220m a year.
Last year Ralph Lauren, who founded the company, stepped down as chief executive and was replaced by Stefan Larsson.
The cuts are the first major move for the new boss, who is credited with turning around the fortunes of Gap's low-end brand Old Navy.
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.
Luxury slump
The luxury sector has been hit by declining sales in recent months. On Monday Burberry revealed that chief executive Christopher Bailey had taken a 75% pay cut following a slump in sales.