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American Apparel lays off 2,400 employees

By Sara Ehlers

18 Jan 2017

Los Angeles - As speculated, American Apparel went through a massive round of layoffs this week. The Los Angeles-based company terminated approximately 2,400 people this past Monday, January 16.

The elevated basics line confirmed earlier that there would be layoffs across the board. This new announcement included job positions from factory workers to high-level management. On Monday, WWD reported that these cuts were confirmed, with an additional 1,000 jobs still being determined, according to a spokeswoman. There is a chance that some of the positions will be kept on under the new ownership, but no confirmations.

In total, 3,500 jobs could be cut according to the publication. Ultimately, the buyer will decide which positions will stay on in the new business. Canadian company Gildan Activewear has agreed to buy the company for 88 million dollars including its intellectual property. The future of the rest of American Apparel employees will be determined under the new management once the transition is complete.

The company’s liquidation will happen within 90-120 days. This means that within the next 120 days, the rest of American Apparel’s locations will shutter. As the company continues towards the end of its road, many more employees may be laid off as a result.