American Apparel To Lay Off Nearly 200 Employees

Los Angeles retailer American Apparel Inc. will be laying off around 180 employees as it tries to make a comeback amidst worker discontent and new management.

The layoffs will come from the company’s manufacturing operations in Southern California and will involve 3.8 percent of the company’s approximately 4,800 manufacturing and office workers in the Soutland. The layoffs will affect less than 2% of the company's 10,000 total employees with some office positions being cut as well.

According to new CEO Paula Schneider, who took over as chief executive in January after the board fired Dov Charney last year, the layoffs will help realign the workforce to meet the company's changing production needs. American Apparel plans to manufacture 30% fewer styles this year compared to 2014, she said, which means the company needs fewer workers in manufacturing.

The American retailer has recently come under fire when one of its ads was banned by the U.K.’s ASA for sexualization which it tried to circumvent by using airbrushing techniques. It further stirred attention for an leaked email from a modeling agency casting which said the brand wanted “Real models. Not Instagram hoes or THOTs.” Over the last five years American Apparel has experienced about $340 million in net losses and has more than $200 million in debt. In recent weeks, the company has gone through a string of changes by firing longtime creative directors Marsha Brady and Iris Alonzo.

According to the Los Angeles times Schneider has until Sunday to present her operational plan to the board and has not ruled out additional layoffs.