Tefron Ltd., the producer of intimate apparel, performance activewear and swimwear, said that as a results of the slowdown in global economy, it plans a headcount reduction at the company of around 15%. The Israeli-based company said that cutbacks include combining
production sites in Jordan, increasing the efficiency of the knitting
process, reducing manufacturing costs.
The company also said it plans to expand marketing activities in Europe. It is also increasing marketing to local customers as well as opening a factory store for
selling surplus in Israel, as part of the strategy to deal with surplus
inventory.
The company expects that these steps “will reduce the effects of the global economic situation on operations, as well allowing the matching of the Company's resources to the anticipated level of activities in the coming year. This, all the while maintaining Tefron's competitive advantages and profitability once the global economic situation improves.”
Tefron's clients include Victoria's Secret, Nike, Target, The Gap, J. C. Penney, lululemon athletica, Warnaco/Calvin Klein, Patagonia, Reebok, Swimwear Anywhere, Abercombie & Fitch, and El Corte Englese, as well as other well known retailers and designer labels.
