GREENSBORO,, N.C., Nov. 14 (UPI) -- VF Corp., the world's largest apparel company, said Wednesday it will cut 13,000 jobs and shed some divisions as it concentrates on its jeanswear, intimate apparel and outdoor businesses.
The company said the job cuts, which will affect 18 percent of its 71,500 employees, were part of strategic changes that are intended to reduce annual costs by $115 million a year.
The Greensboro, N.C.-based company said it was trying to sell its Jantzen swimwear business, which is based in Portland, Ore., and has annual sales of about $100 million. It said it would also exit its private-label knitwear business and a small specialty workwear business.
"Current conditions dictate a different approach to how we manage and measure our business," said chief executive Mackey McDonald.
"Our jeanswear, intimate apparel and outdoor businesses enjoy healthy returns on capital, and our acquisition and brand investment activities will be focused in these areas," McDonald said.
About 3,800 of the job cuts will come from the businesses VF is exiting. VF spokeswoman Cindy Knoeble said two plants in North Carolina will be closed, with about 740 employees losing their jobs.
A knitting, dyeing and finishing textile operation in Martinsville, Va., will be shut down, affecting 2,300 jobs, as VF moves its wholesale screenprint knitwear business to Nashville during the next six to nine months, the company said.
Last month, VF said its sales for the last three months of this year could be down by about 10 percent because of slow retail sales, possibly reducing company profits by more than 35 percent.
VF, with brands including Lee, Wrangler, Riders, Rustler, Vanity Fair, Vassarette, Bestform, Lily of France, Lee Sport, Healthtex, Jantzen, Red Kap, JanSport, Eastpak and The North Face, said it was "aggressively seeking to add brands and companies to complement its core businesses that will enable it to reach new consumer segments and international markets."
The company said it would reduce domestic production and shift to independent contractors or cheaper manufacturing locations.
George Derhofer, who oversees VF's textile operations in Virginia, said the company is competing with foreign plants that pay much lower wages than factories in the United States.
The company said it would consolidate its domestic intimate apparel headquarters to one location, integrating its New York-based Bestform headquarters with its Vanity Fair and Vassarette businesses located near Atlanta.
