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Levis to cut 257 jobs, close Manila plant
Jeans maker Levi Strauss & Co. is laying off some 257 workers with the closure of its cut-and-sew apparel plant in Manila on July 31.
In a statement, the company said the plant closure would allow it to focus on its core competency of marketing products in Asia, in line with its global strategy.
"This has been a very difficult decision for us. We have examined comprehensively all other options, including cost containment and improving the efficiency and productivity of this plant as first options. Unfortunately, such measures cannot overcome the significantly lower costs of outsourcing," said Ramon Martelino, country manager for Levi Strauss Philippines.
"We deeply appreciate the contribution of our employees and understand that this is a troubling time for those affected. We will do our best, in line with Levi Strauss & Co.s values, to treat our employees with dignity and respect, and help them explore employment elsewhere."
Levi Strauss said it would continue its retailing business in the country through a large franchised distribution network.
"Levi Strauss & Co. regards the Philippines as a key market here in Asia Pacific. This move reaffirms our marketing presence as we remain committed to bringing premium quality, branded Levis and Dockers products as well as innovative marketing programs to both our customers and consumers," said Martelino.
As a mark of appreciation, the company said its foundation would donate $50,000 to a non-government organization in the Philippines to implement social and economic development programs for the residents near its plant.
The company's plant has been producing Levi's jeans for the local and Asian markets since 1972. With its closure, Levi Strauss will source product from selected contractors in Asia.
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