NEW YORK -- American Apparel said Monday it plans to lay off workers and shutter stores with weak sales.
The Los Angeles-based company hopes to slash $30 million in operating expenses over the next 18 months. A spokeswoman declined to comment on the number of stores that will close and the number of employees who will receive pink slips.
“We are committed to turning this company around,” Paula Schneider, the retailer’s newly-named chief executive, said in a statement. “Today’s announcements are necessary steps to help American Apparel adapt to headwinds in the retail industry, preserve jobs for the overwhelming majority of our 10,000 employees, and return the business to long-term profitability.”
Most layoffs will be in the head office and at retail locations, a source with knowledge of the plans told The Huffington Post.
The company's stock price plunged nearly 11 percent by Monday afternoon on news of the cost-cutting measures.