Los Angeles – After announcing another round of layoffs, American Apparel
has had to deal with more issues this week. This Monday, there was a group
confirmed to be leading a boycott for the company’s products. Unfortunately
for the Los Angeles-based retailer, this only means there are more problems
for their turnaround plan.
The boycott came directly as a response to the layoffs that were announced
recently. Current chief executive officer Paula Schneider had issued a memo
to employees announcing that there would be cuts. The reason for the cuts
were to improve efficiency for the company with production, shipping, and
other areas of the company overall. The cuts would implement a new
production workforce that is more evenly split between employees that make
basics as well as those who create more complex pieces, according to WWD.
As there is more demand coming from the basics side of American Apparel,
more of the complex pieces “may be outsourced.”
Although crucial to the company’s turnaround plan, reactions to the layoffs
were not entirely positive among workers. The decision for layoffs means
that many American Apparel workers will be losing their jobs. As reported
by WWD, last week’s cuts totaled approximately over 500 workers across
Southern California locations. Although this means the company could be
revamping its business, unfortunately it may call for more boycotts and
issues in the future.