L Brands Inc. is eliminating 850 corporate staff as it works to stabilize its business. The 15 percent headcount reduction is part of the Ohio company’s efforts to drive $400 million in annual cost savings by retooling its management structure and labor model.
L Brands will also collaborate with suppliers to find areas to rein in costs and maximize margins for Victoria’s Secret, which it’s still planning to spin out into a separate, standalone business.
The company said Victoria’s Secret’s spring inventory receipts were down 45 percent versus a year ago, while fall receipts are projected to tumble 50 percent from last year.
Meanwhile, L Brands is continuing the process of closing 250 Victoria’s Secret stores this year, while also negotiating with landlords for rent breaks. And overseas, L Brands is working to reduce operating losses in the company-owned businesses in the UK and China.
