US-based clothing retailer American Apparel is laying off over 500 workers of the 4,300 due to ‘revamped’ production processes. The company may now start outsourcing part of its production. According to grapevine former workers of the retailer have been paid two months’ salary, in addition to US $ 800 more if they promise not to file further claims against it.
Besides this, Paula Schneider, CEO of the company has said that the manufacturing of more complicated products such as jeans, could soon be outsourced to a third-party company, which will still be American-made.
American Apparel has been struggling to get back on track in the recent past. It has also made a few management changes recently to better handle the company operations through the appointment of new members like Paul Charron to its Board of Directors. All these changes are to give a different outlook for this upcoming year regarding the company’s repositioning in the market.
Also Read – American Apparel appoints Paul Charron as Head of BoD
Nonetheless, the clothier is making all the efforts to make a strong comeback and their recent sacking of more than 500 workers shows that the company is ready to take bold steps for economic restoration.
Bharat Tex Special Report 2026 
