L Brands, Inc., the parent company of Bath & Body Works, Victoria's Secret Beauty and Secret Lingerie as well as PINK, is moving forward on a substantial reorganization and cost cutting strategy that aims to save $400 million dollars.

While the company has reopened most of its North America stores it is also preparing to layoff 15% of its headcount, about 850 associates, according to a press release.

It is also working with suppliers to identify ways to cut merchandise costs and increase merchandise margin rates at its Victoria's Secret stores.

As of July, the spring inventory receipts for Victoria's Secret were down about 45% compared to last year, and the company expects fall receipts to be down 50% compared to 2019. L Brands has earlier announced it was closing 250 Victoria's Secret stores this year.

"The Board and management remain committed to separating the Bath & Body Works and Victoria's Secret businesses, as well as improving the profitability of the Victoria's Secret business," Andrew Meslow, L Brands CEO, said in the release. "During the second quarter, we made meaningful progress toward these goals. Decisions relating to our workforce are incredibly difficult and not taken lightly, but these actions are necessary to best position our company for the long-term. On behalf of the board and management team, I'd like to extend our deepest appreciation to the impacted associates for their contributions and dedication over the years."

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