American Apparel Massive Layoffs, Production Outsourcing Will Expand The Proportion

The founder and current CEO of American Apparel may not stop fighting until the American Apparel dies.

From the end of last year to the beginning of this year, American Apparel still had no rest after undergoing bankruptcy and reorganization.

It is reported that this time, the brand incumbent CEO has laid off 500 employees, accounting for 10% of the total number of 4600 employees in southern California, because the group frequently laid off workers. In July and November last year, a large number of staff demonstrations were launched.

Moreover, CEO revealed in the staff letter that the production process will be redesigned, including reducing factories.

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In addition, it is worth mentioning that CEO seems to plan to outsource cowboys and other products that require complex processes.

But CEO still insists on "made in the United States".

CEO explained that compared to the T-shirt that accounts for 80% of the group's output, the cowboy production is only 20%, but the cost of the staff is basically flat, so this is why the company intends to outsource business.

The industry also believes that outsourcing of manufacturing is not necessary.

However, since the incumbent CEO has been in office, it has experienced the brink of gradual lack of customers and the impact of retail competition.

After the founder was swept away, he took the lead in lowering his working hours and cutting.

And layoffs and other ways to "innovate".

Dov Charney, the brand's founder, is strongly against it.

He claims that the purpose of building a brand is to "make in the United States" to counter the American Apparel Industry's outsourcing of manufacturing business to low-cost countries.

At the same time, opposing outsourcing and reducing staff salaries has become the reason why many employees still support him after he left.