Victoria’s Secret stock prices plummeted Wednesday following news that the lingerie company was laying off 160 management executives from its home office in Ohio.
The company announced the layoffs on Tuesday, and the company’s stock price has dropped nearly 5% as of Thursday morning. The 160 firings constitute roughly 5% of the company’s corporate population in Ohio and save the company $40 million annually in salaries.
The company buried news of the firings under a press release announcing a “new leadership structure.”
“Today’s announcement of a simplified leadership structure will streamline operations, collapse silos and allow the company to optimize spend in management roles, enabling reinvestment in growth initiatives,” VS CEO Martin Waters said in a statement.
VICTORIA’S SECRET WELCOMES FIRST MODEL WITH DOWN SYNDROME
L BRANDS TO SPIN OFF VICTORIA’S SECRET
“The simplification of the organization has led to a reduction of about 160 management roles, or approximately 5% of home office headcount while providing for reinvestment in non-leadership roles focused on executing the company’s strategic initiatives,” he added.
The firings come after more than a year of the company attempting to shift its image away from the Victoria’s Secret Angels of years past, which critics argued was sexist and elitist.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
VS split away from owner L Brands last year, triggering the messaging change. The company’s sales have since slumped, however.
“We are moving from what men want to what women want; We are going from a look to a feeling, from excluding most women to including all women, from mostly unattainable to grounded in real life,” Waters said in a statement at the time.