Duluth Trading Reduces Workforce by 51 Employees Amid Expense Savings Efforts

Duluth Trading Co. has reduced its workforce by 51 employees, or 3% of its total workforce, as part of its expense savings initiatives. The workforce reduction occurred on June 4, 2025, and the associated expenses were less than $1 million. The company is focusing on brand awareness, product innovation, and customer service through expense savings actions.

Title: Duluth Trading Co. Reduces Workforce by 3% as Part of Cost-Saving Initiatives

Mount Horeb, Wisconsin - Duluth Trading Co., a retailer known for its workwear and casual apparel, has announced a workforce reduction of 51 employees, representing 3% of its total workforce. The layoffs, which took place on June 4, 2025, are part of the company’s broader initiative to streamline operations and reduce business complexity [1].

The company confirmed to News 3 Now that the reduction was part of its efforts to drive efficiencies and reduce expenses, as mentioned during its Q1 earnings call. The affected employees were from various parts of the business, including the Mount Horeb office, remote employees, and distribution centers across the US [2].

The expense associated with the workforce reduction was reported to be under $1 million [1]. Duluth Trading’s strategic realignment aims to enhance focus on brand awareness, innovative products, and customer service. The company faces significant challenges, with a 46% decline in stock value over the past year and negative EBITDA of $3 million in the last twelve months [2].

The workforce reduction comes as part of Duluth Trading’s broader plan to manage costs and enhance its product offerings amidst a challenging economic landscape. The company is also focusing on offsetting tariff impacts through selective price increases and reducing SKUs by 20% by spring 2026 [2].

Despite the workforce reduction, Duluth Trading maintains its fiscal year 2025 adjusted EBITDA guidance of $20-25 million [2]. The company’s forward-looking statements indicate that these changes are designed with the expectation of improving operational efficiency and customer engagement, though they caution that actual results may vary due to factors beyond their control.

Investors and customers will be closely watching to see how these changes influence the company’s direction and market position. Duluth Trading’s commitment to providing an engaging customer experience and its “No Bull Guarantee” will remain a key focus for the company [1].

References:
[1] https://www.channel3000.com/news/duluth-trading-co-reduces-workforce-by-3/article_8012dd83-df92-4745-b33d-6648333b78c1.html
[2] https://au.investing.com/news/company-news/duluth-trading-cuts-workforce-by-3-amid-restructuring-93CH-3883960