Levi Strauss and Wipro in strategic agreement
The initiative, announced in March 2014, is expected to generate net annualized cost savings of $175-200 million once fully implemented.
In this next phase of the productivity initiative, approximately 500 positions will be eliminated, primarily due to the decision to partner with Wipro, a leading global information technology, consulting and business process services company.
Wipro will provide support for certain business services within information technology, finance, human resources, customer service and consumer relations. LS&Co. also continues to reduce layers of management, increase spans of control, remove duplicative roles and make other structural changes as part of the global productivity initiative and the company’s continued structural transformation of its cost base.
Final plans will vary by country, and final estimates for headcount, timing and charges in certain areas of the company’s international business are subject to completion of applicable local works council and other consultative processes.
LS&Co. expects to incur total restructuring and related charges in the range of $45-$55 million in connection with the actions announced today, the majority of which will be recognized in the fourth quarter of 2014. The charges consist of cash expenditures principally related to severance benefits, retention bonuses and consulting fees. ■