OUTLOOK

Having cleaned up most of their excess inventory, companies are now starting to make cuts to headcount.  Most of the focus is on headquarters, where management is being held accountable for having too many people doing jobs that might not need to be done.  

Notably, VF was called out by activist investors to downsize its headquarters. This has led them to cut 500 jobs.  Nike is 2planning to cut hundreds of jobs as sales growth continues to slow.  Other brands are taking similar action – though perhaps not on as large a scale.

Meanwhile, brands and retailers are looking at investing in more technology – and people with the skills to use that technology.  With more affordable tech solutions continuing to enter the market, the bridge1 between ‘what we need’ and ‘what we can afford’ is narrowing.