April 11, 2016
American Apparel cut 450 jobs in Southern California last week, and is eyeing another 150 layoffs this week. The massive cost-cutting, including consolidation of its workforce into one floor at its 800,000-square-foot factory in Downtown LA, underlines the company’s effort to achieve profitability by 2018.
The job losses included sewers, auxiliary workers and supervisors at facilities in DTLA, Garden Grove, and South Gate. Although affected employees reportedly received a severance package based on the number of years employed with the company, no notice of the cuts was filed with the state’s Employment Development Department.
American Apparel filed for bankruptcy protection six months ago. Union representatives for the workers called for protests outside the clothing maker’s HQ.