Levi Strauss Sheds 20% of Its Workforce

Levi Strauss, the US jeans company which has wrestled with years of decline, is cutting 20% of its workforce.

The company is axing 3,300 jobs and will close six plants in the US as it shifts to lower cost production overseas. Levi, which employs 16,600 people, said in January that it intended to close two factories in Scotland with the loss of 650 jobs.

Sales at the San Francisco-based firm fell 8.3% last year and the clothing maker expects that trend to continue during 2002.

The heavily indebted firm is facing tough competition from younger more fashionable brands and expensive designer labels.

After a poor sales start to this year Levi's is on track for its sixth consecutive year of declining revenue.

The job cuts come as the group moves away from the business of actually making the clothes it sells to marketing them.

"There is no question that we must move away from owned and operated plants in the US to remain competitive in our industry," said Philip Marineau, chief executive.

Since 1997, the company has closed 24 North American plants, shifting the work to cheaper overseas manufacturers and laying off about 13,000 employees.

The latest closings, also shifting work overseas, leave only two plants open in the United States for the 149-year-old company that has symbol ised the pioneering American spirit since the gold rush days, when its blue denim jeans were worn by miners.

In June, the company will close plants in San Francisco and Blue Ridge, Georgia; in August, plants in Brownsville and San Benito, Texas; and in October, plants in Powell, Tennessee, and El Paso, Texas.

The privately held company said it would continue to operate two American plants.