Clarks has announced it is in the process of a company “restructuring,” resulting in the immediate laying off of approximately 170 workers.
The majority of cuts have occurred at Clarks headquarters in Somerset, England, as well as at company offices in Boston, Massachusetts. Affected employees have been offered a severance package and support in finding new jobs elsewhere. Meanwhile others still with the company have been asked to take on “new roles”, though Clarks did not specify what this entailed.
“Whilst Clarks remains a global leader in the footwear market, we have, in recent years, experienced a highly demanding commercial and economic environment, with increasing competition and intensified customer expectations. To meet these challenges Clarks has undertaken an in-depth review and a subsequent reorganization of the business,” said a company spokeswoman in a statement.
The cuts come after a disappointing 2015 for the 100 year-old footwear brand, which saw annual sales fall 3.2% to £1.5 billion. In September of last year, Clarks CEO Melissa Potter and CFO Robin Beacham both left in what was widely reported as a surprise move.