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Yarn maker Unifi cutting 400 more U.S. jobs

Susan M. Andrews -- Furniture Today, April 20, 2003

Greensboro, N.C. — In the face of a weak U.S. economy and ongoing price pressure from Asian imports, yarn producer Unifi is eliminating 400 more U.S. jobs, a move expected to save about $20 million annually.

This brings to some 600 the number of U.S. jobs eliminated since January, about 15% of the company's domestic workforce. Affected operations include plants in Yadkin, Rockingham and Guilford counties in North Carolina, and Unifi's headquarters here, where managerial categories were reduced from eight to four.

This streamlining will increase efficient use of the investment in technology and information systems Unifi has made over the past two years, the company said.

Brian Parke, chief executive officer, said, "We must take steps to create a radically redesigned organization that is leaner, flatter and faster.... All of our strategic growth initiatives, domestic and global, remain fully funded and fully staffed, including product development, information technology, employee development and customer support."

The company expects to take a restructuring charge of about $11 million related to the downsizing. No further job eliminations are planned for the remainder of the year, the company said.

Unifi is a major producer and processor of textured yarns used in the home furnishings and other industries. It has operations in Asia, Europe and South America.

In its fiscal year ended June 30, 2002, Unifi reported a net loss of $43.9 million, including a $37.9 million after-tax charge for an accounting change, on sales of $914.7 million.

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