GREENSBORO, N.C. – Apparel maker VF Corp. is cutting about 13,000 jobs, or 18 percent of its work force, as part of a plan to bolster profits and spur growth.
VF said Wednesday the cuts are part of a restructuring plan that also includes dropping its swimwear, private label knitwear and specialty workwear businesses.
The workwear division employs more than 1,000 in Tennessee, but it couldn't be immediately determined how those jobs were affected.
The company plans to move some production activities to lower cost manufacturing areas, and consolidate its domestic intimate apparel headquarters in one location.
VF said the actions would reduce its costs by $115 million annually. It employs about 71,500 people worldwide.
"Current conditions dictate a different approach to how we manage and measure our business," said Mackey J. McDonald, chairman and chief executive officer.
"Our profitability remains at healthy levels, our cash flow is strong and our balance sheet is powerful, yet our return on capital has declined in recent years. We strongly believe this trend can be reversed," he said.
VF said it will take a charge of $280 million to $320 million, or $1.74 to $1.98 a share, in the fourth quarter.