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Investing.com -- Duluth Holdings Inc . (NASDAQ:DLTH) stock jumped 7.3% after the lifestyle brand announced a workforce reduction as part of its expense savings initiatives.
The company, which specializes in men’s and women’s workwear, casual wear, and outdoor apparel, cut 51 employees on June 4, representing approximately 3% of its total workforce. The reduction is expected to cost less than $1 million in related expenses.
According to Duluth Holdings, these cost-cutting measures are designed to reduce complexity in the business operations. The company stated that the restructuring will allow it to increase focus on key strategic areas including brand awareness, solution-based product development, product innovations, and customer service.
The market responded positively to the news of the company’s efforts to rightsize its business and streamline operations, as evidenced by the stock’s significant gain.
Duluth Holdings offers a range of clothing and accessories through its retail stores and e-commerce platforms. The workforce reduction represents the company’s latest move to optimize its operational structure and improve efficiency.
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