Destination Maternity cuts jobs as part of restructuring initiative
Destination Maternity has announced job cuts from its corporate product and sourcing teams, as part of a broader strategic plan to to reduce costs and improve long-term growth and profitability.
In a press release, Destination Maternity said this decision follows an "ongoing rationalization of the company’s overall product mix and improvements in inventory efficiency."
The company said they predict these changes will bring in a net cost savings between $1.2 and 1.4 million in fiscal 2019.
“We completed an in-depth review of our product offer, overall inventory levels and distribution channels," said Marla Ryan, CEO of Destination Maternity. "Through this effort, we identified profitable solutions to improve our product mix and reduce inventory as we begin 2019. We also made the difficult decision to reduce headcount in our product and sourcing divisions to better rationalize resources and costs across the organization."
Ryan added that the company will also use these redistributed funds to boost Destination Maternity's digital presence as it seeks to appeal to "today’s millennial moms and moms2be."
Destination Maternity expects this restructuring plan to result in a one-time severance charge of about $0.5 million during the third quarter of 2018.
Copyright © 2021 FashionNetwork.com All rights reserved.