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Hanesbrands lays off Winston-Salem workers. Company does not say how many affected.

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HANESBRANDS BUILDING

Hanesbrands Inc. confirmed Monday conducting an unspecified number of job cuts companywide.

HanesBrands Inc. said Monday it has cut an unspecified number of local job in response to current financial and sales challenges.

Some affected employees told the Winston-Salem Journal that corporate headquarters jobs were among those eliminated.

At last count, HanesBrands had about 2,300 employees in Forsyth County and about 2,800 in North Carolina counting a distribution center in High Point.

As of February 2022, about 88% of its 59,000 global workforce was based outside of the United States.

“We continue to operate in a very challenging environment, and we must focus on controlling costs as we continue to execute our Full Potential plan,” spokesman Kirk Saville said.

“As a result, we made the difficult decision to eliminate a number of positions across our company. These are valued associates, and we thank them for their many contributions to HanesBrands.”

Saville said the manufacturer would not provide additional details since it is in its quiet period prior to releasing its fourth-quarter earnings report Feb. 2.

HanesBrands said Jan. 12 it expected to end fiscal 2022 by slightly exceeding the topline of its fourth-quarter sales projections. It did not provide what the fourth-quarter sales totals would be.

Its fourth-quarter financial guidance included sales in a range of $1.4 billion to $1.45 billion and adjusted earnings in a range of 4 cents to 11 cents. The manufacturer also said adjusted operating profit would be at the midpoint of the projected range.

Exceeding fourth-quarter sales projections, even slightly, is a positive for HanesBrands given it had reduced its fiscal 2022 sales guidance three times.

CFRA Research analyst Zachary Warring said that in response to the third-quarter report that “we continue to believe Hanesbrands will struggle as we move into 2023 with a weaker consumer and slowing demand for durable goods.”

HanesBrands opened the curtain in May 2021 on its Full Potential initiative, which is focused on its core strengths: its globally recognized basic apparel brands; domestic, Central and Latin America and Asian supply chain; “deep consumer loyalty”; broad channel distribution; and global footprint.

During the second quarter, Hanesbrands’ Full Potential changes included: consolidation in the Champion distribution network in the U.S. to two centers; and beginning direct shipping innerwear product from its Central American manufacturing facilities to certain wholesale customers.

The manufacturer opened a West Coast distribution center during the third quarter, while adding automation to several distribution centers “to improve picking and sorting speeds while lowering costs.”

In May 2017, HanesBrands said a multiyear growth program included 220 jobs being phased out companywide. That included 120 local employees who took voluntary severance packages, as well as another 20 employees in other operations.

On April 2017, the company said it would cut 60 local jobs across several functions, while adding 70 jobs to support operations that were growing, including the online and digital units.

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@rcraverWSJ

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