(Filed Under Financial and General Interest News). Hanesbrands Inc., is eliminating approximately 210 positions in management and corporate functions, the company announced.
They also plan to close their yarn production plant in China Grove, N.C. by the end of 2008. Hanesbrands Inc., is a leading marketer of innerwear, outerwear and hosiery under brand names including Hanes, Champion, and Playtex.
According to the company, half of the cutbacks will be made in the company's supply chain management organization, while the other half will be made in the corporate functions of customer management, finance, human resources, information technology and marketing. Of the 210 jobs that will be eliminated, approximately 155 are located in Winston Salem, 35 at various other U.S. locations and 20 at international locations. "We have approximately 48,600 employees worldwide," said Matt Hall, vice president of external communications at Hanesbrands. "We have about 11,000 employees in the United States. Both numbers will decline by about 200 after the job reductions."
"Given the significant economic uncertainty, we must manage our business conservatively, and we must tightly control costs," said Richard Noll, the company's chief executive officer. "With these actions, we are accelerating our ongoing functional consolidation and conducting additional streamlining. These are difficult, but necessary actions that we must take to compete in today's market environment and emerge as a stronger company."
Those that will be out of a job will receive severance and outplacement benefits. "We will incur restructuring costs of about $14 million, mostly in severance costs," said Hall.
The decision to close the yarn production plant was made due to the "declining needs for higher-end ring-spun yarn used in certain underwear, sock and t-shirt products." This closure means 185 employees will be out of a job.
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