Duluth Holdings announced that it will reduce its workforce by 18%. The news comes as part of the company’s cost-cutting plans in the wake of declining revenue.
Workforce cuts will include positions at its corporate offices in downtown Mount Horeb. The company owns and operates a total of over 60 Duluth Trading Co. stores.
By spring 2026, Duluth will also reduce the number of products it sells by 20% and plans to make $15 million in cuts in an effort to “streamline operations.”
The company’s first quarter revenue shortfall marked a 12% year-over-year decline, and its stock price has plummeted 38.8% over the last six months.
Other contributing issues cited by the company include economic challenges that may continue to affect consumer spending, a competitive retail landscape that may impact sales growth and a 29% inventory increase that could pressure cash flow.
Duluth is also anticipating $14 million in additional product costs as a result of tariffs.
