LOS ANGELES (CBSLA.com) — American Apparel Inc. will lay off about 180 employees as it attempts a comeback amid worker discontent and new management, according to a report Thursday.
According to the Los Angeles Times, a majority of the job losses will come from the company’s manufacturing operations in Southern California.
The layoffs will involve 3.8 percent of the company’s approximately 4,800 manufacturing and office workers in the Soutland, The Times reported.
Employees at the nearly 250 American Apparel stores should not be affected. The company employs nearly 10,000 people in all.
American Apparel has experienced about $340 million in net losses over the last five years and has more than $200 million in debt, according to the newspaper.
The layoffs are expected to help realign the workforce to meet the company’s changing production needs as American Apparel plans to produce 30 percent fewer styles this year compared to 2014, which means fewer manufacturing workers are needed.
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