Fruit of the Loom to Lay Off 2,900 Workers
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Fruit of the Loom Inc. said it will lay off at least 2,900 workers and close a Louisiana manufacturing plant as it tries to lower costs by shifting production to cheaper overseas facilities. The Chicago-based apparel maker has already cut more than 4,000 jobs in the last three months as part of an effort to compete more effectively in the global marketplace. “We have to shift to lower-cost manufacturing, react to our inventory levels and consumer demand--all factors affecting the announcements we made earlier today,” spokesman Mark Steinkrauss said. The company gave 60-day notices to 1,035 workers in Kentucky and 1,873 in Louisiana. Fruit of the Loom said earlier this year that it hoped to cut costs by $100 million over three years by moving 80% of its manufacturing abroad. The company has increased sewing operations in Mexico, Central America and the Caribbean, Steinkrauss said. Fruit of the Loom shares fell 25 cents to close at $25.06 on the NYSE.
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