American Apparel Cuts 500 Jobs | Fashion News
American Apparel has had it’s fair share of problems over the last few years. The fashion brand emerged from bankruptcy this January, removing founder of the company, Dov Charney. Since then, 500 members of staff have been offered a redundancy package rumoured to consist of two months pay.
Senior advisor with union Hermandad Mexicano, Nativo Lopez, also suggested the business had been offering an additional $800 if staff renounced their right to claim against the company. Paula Schneider, the new CEO of American Apparel, who has replaced Charney, explained the mass redundancies were due to a “redesign of our production process” after “months of careful and rigorous review“. The newbie also hinted to outsourcing some of American Apparels trickier items such as jeans, but stipulated they would still be made in America.
Dov Charney responded to the companies actions and suggested plans: “They are doing exactly what American Apparel fought against”, Charney said this week, adding that while he was in charge he had always resisted “outsourcing and searching for ways to pay people less money”.