L Brands, the owner of Bath & Body Works and Victoria’s Secret, will eliminate approximately 15% or around 850 jobs at its corporate headquarters.
The company announced its decision after completing its previously announced review of its home office organizations. The job cuts are part of its effort to significantly reduce overhead expenses amid the COVID-19 pandemic, which forced businesses to shut down and incur losses.
L Brands said its employees who will be laid off will receive a comprehensive benefits package including severance, continuing access to health insurance, outplacement services, and other support.
In a statement on Tuesday, L Brands CEO Andrew Meadow said, “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.”
He added, “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.”
L Brands to close 250 Victoria’s Secret stores
Aside from the job cuts, L Brands will also reduce Victoria’s Secret store selling costs by changing its management structure and labor model. It will also implement its previously announced plan to close 250 Victoria’s Secret stores this year while negotiating with landlords for ongoing rent relief.
