Hanesbrands Reorganizes Factories
Nearly a year after being spun-off from Sara Lee Branded Apparel, Hanesbrands Inc. announced it will close its factories in four countries and lay off 5,300 workers.
Instead, it will transfer its production of underwear, socks and activewear to factories in Asia and Central America, where it will employ 3,000 workers and reduce production costs. It will use fewer but bigger factories.
In the June 27 announcement, Hanesbrands said it would shutter factories in Canada, the United States, the Dominican Republic and Mexico, where sewing costs are higher than in Asia or Central America.
The Winston-Salem, N.C.–based company it is trying to maintain a balance in its supply chain between the Western Hemisphere and Asia while increasing operating profits 6 percent to 8 percent a year. —Deborah Belgum
