Hanesbrands Inc announced continued progress in executing its consolidation and globalization cost-reduction strategy.
The latest company streamlining, including consolidation through nine plant closures in four countries and a worldwide reduction of management and administrative jobs, is part of a multiyear effort the company began when it was spun off as an independent company in September 2006.
“We are making significant progress in consolidating our organization and executing our global supply chain strategy,” Hanesbrands Chief Executive Officer Richard A. Noll said.
“This streamlining is part of our larger cost-reduction and process-standardization strategies to increase competitiveness and become a more effective organization. Taking these actions will better position us to achieve our long-term growth goals and financial objectives and help us in our efforts to offset independent company costs and selected investments we are making in our business.”
Hanesbrands, a leading marketer of innerwear, outerwear and hosiery apparel, has long-term annual growth goals of 1 percent to 3 percent for sales, 6 percent to 8 percent for operating profit excluding actions and double-digit gains for earnings per share excluding actions. The foundation for achieving these long-term growth goals is baseline performance in 2007.
Most of the cost-saving actions announced are expected to be completed by the end of the year. Approximately 5,300 employees will be affected, while the company has added or will add approximately 3,000 positions at other company manufacturing plants to absorb shifted production.
The company will close plants and operations affecting nearly 5,000 employees in Canada, the Dominican Republic, Mexico, and the United States and Puerto Rico, while moving production to lower-cost operations in Central America and Asia.
In addition, approximately 350 management and administrative positions will be eliminated, with the majority of these positions based in the United States.
“These efforts are a competitive necessity to strengthen our overall company and its growth opportunities, but we regret that employees will be affected by losing jobs,” Noll said.
marketing@alchempro.com
