Greensboro, NC, Mar. 3-- Unifi is closing two plants, cutting back at another and eliminating nearly 400 jobs, or about 10 percent of its work force, to cut costs in response to the slump in the textile business.
The moves announced Tuesday include closing a plant in Altamahaw, shutting down manufacturing of dyed yarn in Manchester, England, trimming jobs at a plant in Letterkenny, Ireland, and cutting the work force at Unifi's Greensboro headquarters.
That will result in reducing its work force to about 3,700 from 4,100, the company said.
In a news release, the company said the total charge for the cuts would be between $24 million and $28 million, but that the changes should improve pre-tax earnings in the company's next fiscal year by $22 million to $24 million.
"By purchasing some of our raw materials on the open market in our European operations, exiting declining non-core businesses, and consolidating yarn production, Unifi can reduce its fixed cost substantially without material impact to our top-line sales or disruption in service to our customers," president and chief executive Brian Parke said a news release. "Although these are difficult decisions that affect the livelihood of many people, they are necessary steps if Unifi is to return to profitability."
William Lowe, the company's vice president and chief financial officer, said the changes will eliminate substantial overhead and other expenses.
"We ... are focused on continuing to take actions that will improve our operating margins to return the company to profitability," Lowe said.
Operations at Altamahaw, which employs 140 people and produces air-jet textured polyester products, are to end on May 1, the company said. Some equipment and an undetermined number of jobs are to be transfered to a Unifi facility in Yadkinville.
In addition, all 102 jobs in Manchester will be eliminated and about 120 of the 420 jobs in Letterkenny are to be cut.
Unifi said about 25 salaried workers at its Greensboro headquarters will lose their jobs, as well as another 25 U.S.-based salaried employees based at manufcaturing facilities.
Workers were informed of the cuts at meetings Tuesday, the company said.
Textured yarns made by Unifi are found in home furnishings, apparel and industrial fabrics, automotive, upholstery, hosiery, and sewing thread.
