Tuesday, November 18, 2008

Wedgie Time: Hanesbrands to Soil Almost 400 Undies

Hanesbrands is getting into the cost cutting mood and has announced not only layoffs, but also a closure of a factory. They intend to be skimpier by 395 employees in the layoff.

The factory closure is in China, psyche... It is in China Grove, North Carolina in the USA. That action puts 185 people out of work. The rest will come from various internal operations and management positions with the bulk of those in Winston-Salem, North Carolina.

A point not made well across this blog yet is the factory closures, halts, and otherwise reduced operations can be attributed to a few different elements with different weighting for each. One of course is the tapped out clownsumer without bucks or creditbucks to spend and this is significant. Another subtlety that may be overlooked is the relative strength the US Dollar has been enjoying over other currencies as of late. While this makes a vacation more appealing out to Europe, not many people are in a position to head out and spend the kind of money a trans-Atlantic flight and accommodations would incur. The downside of the US Dollar strength is that while American Clownsumers are unable to consume, the products that are produced here become more expensive for other nation's clownsumers and consumers to purchase.

Hanesbrands is headquarted in Winston-Salem, North Carolina.

Related:
Out of This World Non-Shocker
Spinning down the drain
Pink slip, Number of Copies [3,000]

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