Movado Group Inc. is planning a restructuring effort, including job eliminations, due to the “ongoing economic challenges resulting from the COVID-19 pandemic.”
The American watchmaker (NYSE: MOV) said in a filing with the U.S. Securities and Exchange Commission that it’s seeking to “reduce operating expenses and adjust cash flows.”
The number of layoffs planned was not disclosed. The restructuring plan began on June 29.
Paramus, NJ-based Movado estimates that it will incur total charges of $9 million to $12 million under the plan. That is “in addition to the previously-disclosed corporate initiative costs of $7.2 million recorded in the first quarter of fiscal 2021.”
Between $8.5 million and $11 million of the newly announced charges relate to employee severance and benefits costs and stock-based compensation charges for separated individuals. Meanwhile, between $500,000 and $1 million represent costs to consolidate facilities.
