Wolverine World Wide, announced that it has started the process of divesting or licensing its Wolverine Leathers business. In addition, it is doing the same with the Keds brand because both contribute a low amount to profits. The company said that the changes fit with its aim of reducing complexity and prioritizing growth brands.
“We believe the recent changes to our group reporting structure and the announcement of strategic alternatives for Keds and Wolverine Leathers, as part of our regular assessment of the portfolio, will put the business on an accelerated path to improved profitability and restore Wolverine as a best-in-class brand house,” said Wolverine President and CEO Brendan Hoffman.
In response to these to these changes, the Company started reducing its workforce earlier in the week. The new initiatives are expected to save about $30 million in 2023.
“These decisions, particularly those related to our impacted team members, were not taken lightly. We greatly value the contributions of our talented colleagues and are committed to supporting impacted team members in their transitions,” added Hoffman.
Ultimately, Wolverine expects to save a total of about $45 million in 2023 from “organizational synergies and other indirect cost areas.” Also, continuing its supply chain cost initiatives that were launched earlier in 2021should yield about $20 million in savings during 2023.