Jobs will be cut at Calvin Klein and Tommy Hilfiger due to rising inflation meaning people can’t spend as much on luxuries like designer clothes.

PVH Corp has also lowered its full-year projection as a result.

The fashion giant says it plans “to reduce people costs in its global offices by approximately 10 percent” by the end of next year to improve efficiency.

READ MORE: US XPRESS TO LAY OFF UP TO 10 PERCENT OF WORKFORCE IN LATEST JOB CUTS

It now expects revenue to fall this year, after previously forecasting an increase.

The company’s shares declined 4.5 percent after the close of regular trading. 

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In addition to lower demand, PVH said it’s revising its 2022 outlook based on “a more promotional environment, particularly in the North America wholesale business.” 

Clothing firms are dealing with a surplus of stock that accumulated during the epidemic, which is causing them to sell off products at reduced rates.

PVH Corp., formerly known as the Phillips-Van Heusen Corporation, is an American clothing company which owns brands such as Tommy Hilfiger, Calvin Klein, Warner’s, Olga and True & Co. its headquarters is in Manhattan, New York City.

Source: Bloomberg

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