Ralph Lauren’s licensing of Chaps brand could cost 50+ their jobs in Nutley

Ralph Lauren Corp.’s decision to license out its Chaps line of clothing could cost more than 50 employees at the ON3 complex in Nutley their jobs, according to a federal WARN notice filed with the state Department of Labor & Workforce Development.

Ralph Lauren, one of the prominent tenants at the new complex, said in its latest earnings report earlier this year that it is reducing its global workforce under its “Fiscal 2021 Strategic Realignment Plan.” As part of the plan, it is transitioning Chaps to a fully licensed business model through a multiyear partnership.

“We … began the hard but necessary work of simplifying our organizational and cost structures to position the company for future growth,” CEO and President Patrice Louvet said in a prepared statement in the report.

In the WARN notice, Ralph Lauren said the licensure will result in a reduction in the workforce on site of as many as 54 people, but took care to make clear that the facility itself will not be closed. Affected employees will be considered for other available positions, the company noted.

Employees may be eligible for severance and other benefits, the notice said.