Sources close to the situation told the New York Post that the boho-preppy apparel and accessories company had made the cuts as part of a plan to reduce salary overhead by 3 percent in an effort to refocus financial resources on technology and activewear and to bring new senior executives on board.
The company confirmed the layoffs to the Post but provided no further comment.
Burch’s eponymous line, which launched in 2004, is expected to rake in more than $1 billion in sales this year. Best known for the Reva ballet flat and a much-publicized legal splat with her ex-husband Chris Burch, the brand expanded into athleisure earlier this year with Tory Sport and before that into wearable technology thanks to a partnership with Fitbit.
However, as the unnamed source told the Post, “Tory Burch had to reposition itself to continue on a growth trajectory.”
And the workers aren’t happy. One comment posted on the job-ratings website Glassdoor on Dec. 8 said, “This brand isn’t what it was when I joined. Laid off too many employees today without any advance notice. Everyone is depressed.” That statement came from an employee who’s been with the company for three-plus years. It continued: “Stop being so sketchy and tell us what’s going on. Saw too many talented people lose their jobs today. A year ago I would’ve raved about the culture, company and the people I work with. Now half those people are gone.”
Prior to that, on Nov. 27, another commenter predicted that “mass layoffs” were on the horizon. “Many are afraid for their jobs. Morale is low. No one is motivated,” it said, adding, “Tell your staff what’s up. Stop leaving everyone guessing.”