By Skechers employees brace for uncertainty as 3G Capital, notorious for aggressive cost-cutting at Kraft Heinz, takes the reins in an $8.5B buyout. Union leaders warn the deal could eliminate 1,200+ jobs and dilute Skechers’ signature brand identity.
Key Concerns:
- HQ Relocation: 3G Capital is weighing a controversial relocation of Skechers’ iconic Manhattan Beach headquarters to Chicago, a move that would uproot 850 employees from the brand’s Southern California roots and centralize operations within 3G’s Midwest corporate hub.
- Product Line Cuts: Approximately 25% of Skechers’ product lines – predominantly seasonal and novelty designs like holiday-themed sneakers and limited-edition artist collaborations – face discontinuation as 3G prioritizes ‘core profitability’ over creative experimentation.
- Retail Partnerships: Major retail partners Walmart and DSW are sounding alarms over potential margin erosion, anticipating that 3G’s notorious cost-cutting playbook could force them to choose between raising consumer prices or reducing Skechers’ shelf space to protect profitability.
Worker Reaction:
“We built this brand on creativity, not spreadsheets,” said 20-year designer Marco Torres. “This feels like a hostile takeover of our culture.”