Cost-cutting moves at Hanesbrands include shipping a few hundred U.S. jobs offshore.
After a “review” of global operations, the North Carolina-based clothing company made several “structural changes” to “take costs out of the business,” CEO Stephen Bratspies told Wall Street analysts during Hanesbrands’ quarterly conference call Thursday morning.
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“We reorganized and relocated approximately 250 corporate roles to leverage our talent pools outside the U.S., standardized processes, and reduced expenses by approximately $15 million,” he said.
A spokesperson declined to comment on which roles are affected by the shakeup.
Hanesbrands, which enacted another round of layoffs earlier this year, this week found itself in the crosshairs of an activist investor who wants the legacy firm to install new leadership, pay down debt and slash inventory. Reporting on second-quarter results, Bratspies said Hanesbrands cut inventory 12 percent from a year ago, unlocking $255 million in working capital.
The CEO went on to say that the Champion owner is “actively looking” at opportunities to “enhance shareholder value.”
“This includes options to address our debt to further simplify the business and to accelerate revenue growth and margin improvement,” Bratspies said.
In another move aimed at trimming expenses, Hanesbrands will no longer lay claim to domestic cut-and-sew operations when the Arkansas hosiery factory it runs in Clarksville shuts down next month. The employer of 68,000 in more than 40 countries said it would “support” the roughly 230 affected workers “through the transition.”