Hanesbrands to slash jobs by 5,300

WINSTON-SALEM, N.C. Hanesbrands Inc. announced today that as part of its consolidation and globalization cost-reduction strategy, the company is closing nine plants in four countries and reducing the number of management and administrative jobs worldwide. The streamlining efforts are part of the plan begun by Hanesbrands when it became an independent company in September 2006.

We are making significant progress in consolidating our organization and executing our global supply chain strategy,” Hanesbrands ceo Richard 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.” 

The company reported that most of the cost-saving actions 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.

Hanesbrands has long-term annual growth goals of 1% to 3% for sales, 6% to 8% 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.